Japanese Economy Slides Back Into Recession Following Tax Hikes

Japan has slipped back into recession after a sales tax hike led to a drop in investment. The world's third largest economy contracted for a second consecutive quarter, down at a rate of 1.6% Japan's share benchmark fell 3% on the news and trading saw further declines across the Asian markets. The downturn deepens global uncertainty that Japan will rebound as housing investment plunged 24% from last year's numbers. Prime Minister Shinzo Abe announced that a second planned tax hike will now be delayed. The Japanese government is now planning extra stimulus of up to $35 billion that could include subsidies for low income families and struggling small businesses. Japan emerged from its last recession in December 2012 just as Abe took office.