Tokyo stocks jumped more than three percent on Friday, the first day of 2013 trading, following global rallies on a US deal to avert a “fiscal cliff” of tax hikes and huge spending cuts.
By Christopher S. Rugaber and Paul Wiseman
An emergency deal reached after weeks of rancorous negotiations will keep the US from driving off the so-called fiscal cliff, but higher taxes and continued political bickering in Washington threaten to shake the fragile US economy well into 2013.
US President Barack Obama was set to make a televised statement within minutes on Tuesday, after Congress finally passed a bill to avert a “fiscal cliff” budget crisis.
Legislation to block the “fiscal cliff” is headed to the White House for President Barack Obama’s signature. The bill will avoid, for now, the major tax increases and government spending cuts that had been scheduled to take effect with the new year.
Coming together in the early hours of 2013, the US Senate overwhelmingly passed a last-gasp bill Tuesday to avert huge tax increases and draconian spending cuts making up the so-called “fiscal cliff.”