Speaking at a meeting with his top advisory panel, Abe said the package should focus on subsidising education, child-care costs, and on boosting corporate investments to improve productivity.
Abe is expected to announce a snap election later on Monday to take advantage of improved ratings and disorganised opposition parties, and the stimulus package could be a way to lure voters during the election campaign.
The election will be held it is thought October 22.
A weekend survey by the Nikkei business daily showed 44 percent of voters planned to vote for Abe’s Liberal Democratic Party (LDP) versus 8 percent for the main opposition Democratic Party.
“It’s easier for traders to start the week by selling the yen given expected resolution of the parliament and so on.
“But I would suspect a lot of election related stuff is already priced in and the yen would have limited downside,” said Kyosuke Suzuki, director of foreign exchange at Societe Generale in Tokyo.