Prime Minister Shinzo Abe won a major election for the upper house for parliament this past week. Japan’s share market is rallying after the election victory of Minister Abe and is stirring hopes of economic stimulus with Minister Abe’s administration. Minister Abe’s success shows a strong confidence in his economic policies, dubbed Abenomics. In addition, Minister Abe also plans to further change diplomatic policies.
Despite Minister Abe’s victory, there are concerns that the country’s pacifist constitution might be amended. Many people have been critical about Minister Abe’s desire to change the constitution. Minister Abe plans to lift military restrictions to match China’s expanding military and face North Korea’s increasing belligerence.
One of Tokyo’s stock exchange index, Nikkei 225, saw a leap of four percent (15,708.82 points) in Monday morning trade. Topix, another Tokyo stock exchange index, saw an increase of 3.8% to 1,255.79 points.
Minister Abe states that the election result was based off confidence in his economic policies. Minister Abe modestly admits that his economic policies, that tackle inflation, are only half done. Officials agree that:
“He [Minister Shenzo Abe] will need to quickly show progress on needed domestic regulatory reforms, or the Japanese people — and the financial markets — could quickly lose patience.”
U.S. Shares Rise with Several Countries
Investors saw a positive sign from U.S job data on Friday July 8. In addition, U.S shares had increased from last week.
Other countries also saw a surge in shares. China’s Shanghai Composite shares edged 0.23% to 2,994.92 points. Hong Kong‘s Hang Seng saw a boost of 1.5% ending at 20,880.5 points.
Australia’s ASX/200 shares escalated two percent to 5,337.10 points. Markets in Australia were reacting to Malcolm Turnbell, Australia’s Prime Minister, claiming victory for his Conservative Coalition in last week’s general election.
South Korea’s Kospi also benefited from the regional increase in shares with a trading increase of 1.2% (1,987.31 points).