FXStreet (Bali) - Yomiuri reports that Japan looks set to cut the corp tax rate by 2% starting next financial year, following PM Abe's pledge to lower the threshold below the 30% in the years to come.

According to Sonali Desai, Analyst at IFR Markets: "Cuts from April 2015 to gradually lower rate to abt 29% from >35%, with challenge being to make up lost revenue; a 2% cut equals around JPY1 tln."

The news could act as a catalyst further boosting the Nikkei 225 as prospects for more solid results by Japanese companies increase. As a reminder, the Nikkei 225 remains in an intact bull trend, and any additional positive inputs could add fuel to the upside for both the Nikkei and JPY crosses.

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