Shinzo Abe wins Japanese election; fiscal policies to progress though the public is unconvinced.
Image: IStock © Electra-K-Vasileiadou
Shinzo Abe has won the Japanese elections by a small majority of 291 seats out of 475. It was an unconvincing result for the Liberal Democratic party as the opposition democratic party could only put up 60% of candidates in time for the snap election. The future now holds more Abe policies to bring the country out of recession and combat its slumping currency. The USDJPY stayed stagnant at the news around the 118 mark leaving the yen at the lowest levels seen since 2007.
Alongside their coalition partner, the Buddhist-affiliated Komeito, the LDP now has the majority of two thirds needed to pass legislation without recourse to Japan’s upper house. This means that the next consumption tax, scheduled for October 2015 can be passed by the powerful lower house. This step is part of Abe’s programme for revitalizing the economy, which is considered to be half way through. Industry and agriculture on the top of Abe’s list to rescue and looking at data reported this morning, the programme is having varying degrees of success.
On the UP:
Tankan All Big Industry CAPEX (Q4) reports 8.9%, above forecast of 8.0% and previous 8.6%
Tankan All Small Industry CAPEX (Q4) reports -6.7% above expectations of -7.3% and previous -12.9%
Tankan Large Non-Manufacturers Diffusion Index (Q4) reports 15, above forecast of 13 and previous 14
Tankan Large Non-Manufacturers Index (Q4) reports 16 above expectations of 12 and previous of 13
Tankan Small Manufacturing Index (Q4) is up to 1, above the forecast of -2 and previous of -1
Tankan Small Non-Manufacturing Index (Q4) reports -1, above forecast of -2 and previous 0
Tankan Big Manufacturing Outlook Index (Q4) reports 9 from expectations of 13 and previous 13
Tankan Large Manufacturers Index (Q4) reports 12 below the forecast of 13 and previous 13
Tankan Small Manufacturers Diffusion Index (Q4) reports down at -5 from expectations of -3 and previous 0
Tankan Small Non-Manufacturers Diffusion Index (Q4) reports -4 below expectations -3 and previous -1
Abe said after his reelection that, ““We are aware that many people have not yet felt the benefits and it is our mandate to deliver them.”
In the meantime, shares have been falling on Japan 225 [Nikkei] since Monday last week, to today’s levels of 17024. Other indices are experiencing a similar slump, with the USA500 [S&P] at 2007 falling 170 points last week, the USTECH100 [Nasdaq] is down at 422.25, and the DollarIndex is pushing back up to 88.67 to continue on its upward trend.
MT4 Chart: USDJPY
MT4 Chart: Japan 225
MT4 Chart: USA500 [S&P]
Trade forex and indices CFDs on STOCK.com with full training given to all clients