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On Wednesday, the ruling coalition in Japan agreed with four major opposition parties to cancel the temporary gasoline tax as soon as possible this year, after submitting to opposition pressure after a major electoral defeat.

In a joint statement, the coalition led by the “liberal democratic” party and opposition parties said that an extraordinary parliamentary session will be held starting from the first of August next (August) that will discuss the steps necessary to cancel the temporary tax.

Japan imposed additional gasoline tax in the 1970s as a temporary step to finance road building and maintain it. Since 1979, the amount of 25.1 per liter has been added to the basic gasoline tax of 28.7 yen, bringing the total tax to 53.8 yters per liter … and the opposition parties demanded the abolition of this temporary tax to help reduce the high inflation on families.

The government’s approval comes in a clear reflection of the increase in the weakness of Prime Minister Shikiro Ishiba on power as a result of the overwhelming defeat in which his ruling coalition this month in the Senate elections suffered, after he lost his majority in the House of Representatives last October.

In the markets, the “Nikki” index closed a stable on Wednesday, with investors ready for a period of three days that will witness political decisions from the Federal Reserve (the US Central Bank) and the Japan Bank, followed by the end of US President Donald Trump to reach commercial agreements.

The “Nikki” index concluded transactions unchanged at 40,654.70 points. Among the 225 indicator components, it rose 155, decreased 67, and three shares settled. While the broader “Topix” index increased by 0.4 percent.

The Federal Reserve determines interest rates on Wednesday, and while policymakers are widely expected to keep interest rates unchanged, investors will closely monitor indications of the possibility of lower interest rates later this year.

Likewise, the Central Bank of Japan is expected to keep its policy fixed on Thursday, but the markets will search for evidence about the likely date for the central bank to resume raising interest rates.

On Friday, most of the United States trading partners – who have not reached agreements with Washington – will face higher customs duties.

“There are still significant doubts about customs duties, and this will limit the chances of high stocks … and as a result, there is no clear trend in the trading of Japanese stocks now.”

The shares of airlines recorded the worst performance in the “Topix” sub -index from among 33 sectors, driven by the decrease in the shares of “ANA Holdings” to avoid more than 4 percent after its profit report. The profits also affected the shares of the “Advanstist” company, which manufactures the chips test equipment, which decreased by 1.1 percent. On the other hand, Sumitomo Pharma’s shares increased by more than 16 percent, recording the largest increase.

On the other hand, the returns of Japanese government bonds settled mostly on Wednesday amid weak trading.

The Japanese government bonds return settled for ten years at 1.555 percent starting from 05:27 GMT, while the return of the five and two -two bonds fell 0.5 basis points each to 1.095 and 0.825 percent, respectively.

The Japanese government bonds revenue increased for 20 years by 0.5 basis points to 2.535 percent, while the thirty -year bonds revenue increased by two basis points to 3.070 percent.

The long -term Japanese government bonds revenues increased amid fears of increasing financial stimulation after opposition parties supporting debt -funded tax cuts achieved great gains in the Senate elections this month. Prime Minister Shighgero Ishiba, who is financially militant, faces pressure to step down.

On the other hand, the future futures for the Japanese government bonds increased for 10 years by 0.09 yen to 137.99 yen, affected by the rise in US Treasury bonds during the night before. The bond returns move back with prices.