21 Jul 2013
Abe's coalition wins Japan's upper house election
FXstreet.com (Barcelona) - Japanese Prime Minister Shinzo Abe and his ruling coalition won a much-expected majority in the upper house of parliament in elections Sunday, allowing Abe freeway to fully exercise control over both chambers in order to implement his nationalist agenda, which includes ongoing radical economic reforms.
Abe's Liberal Democratic Party (LDP) along with its partner, the New Komeito party, had reportedly won no less than 74 of the 121 seats being in dispute from the 242 seats forming the upper house, NHK reported. However, the lack of enthusiasm to go to the polls by the Japanese population was evident, with Kyodo reporting the estimated turnout to be the lowest since 1998.
As John Noonan, Head of IFR Markets notes: "The LDP and NK are expected to win together at least 72 seats, just short of that needed for an absolute majority. An absolute majority would give PM Abe that much more freedom within his own party to push ahead with reforms without having to worry about factions, earning him the benefit of the doubt with the market."
The win portrays an enormous endorsement of the Liberal Democratic Party's "Abenomics" program, which has permitted to produce a 'once in a decade' change of perceptions towards the depressed economic outlook in Japan, including a much-needed revitalization in the 'chronic' deflation pressures facing the country.
If Mr. Abe ever thought about an ideal scenario in which to govern Japan, this is it, as the vindication now provides the Prime Minister with full power to stay on course with ambitious monetary, fiscal, growth and deregulation policies, and most importantly, it raises the prospects of a potential long-term Japanese leadership.
According to Mr. Abe, cited by Reuters: "We've argued that our economic policies aren't mistaken, and the public gave us their support. People now want to feel the benefits. The economy indeed is improving." Abe went on saying: ""We'd like to do our best to generate a positive cycle -- in which job conditions improve and wages rise, boosting personal consumption and prompting companies to invest more -- as soon as possible."
Abe's Liberal Democratic Party (LDP) along with its partner, the New Komeito party, had reportedly won no less than 74 of the 121 seats being in dispute from the 242 seats forming the upper house, NHK reported. However, the lack of enthusiasm to go to the polls by the Japanese population was evident, with Kyodo reporting the estimated turnout to be the lowest since 1998.
As John Noonan, Head of IFR Markets notes: "The LDP and NK are expected to win together at least 72 seats, just short of that needed for an absolute majority. An absolute majority would give PM Abe that much more freedom within his own party to push ahead with reforms without having to worry about factions, earning him the benefit of the doubt with the market."
The win portrays an enormous endorsement of the Liberal Democratic Party's "Abenomics" program, which has permitted to produce a 'once in a decade' change of perceptions towards the depressed economic outlook in Japan, including a much-needed revitalization in the 'chronic' deflation pressures facing the country.
If Mr. Abe ever thought about an ideal scenario in which to govern Japan, this is it, as the vindication now provides the Prime Minister with full power to stay on course with ambitious monetary, fiscal, growth and deregulation policies, and most importantly, it raises the prospects of a potential long-term Japanese leadership.
According to Mr. Abe, cited by Reuters: "We've argued that our economic policies aren't mistaken, and the public gave us their support. People now want to feel the benefits. The economy indeed is improving." Abe went on saying: ""We'd like to do our best to generate a positive cycle -- in which job conditions improve and wages rise, boosting personal consumption and prompting companies to invest more -- as soon as possible."