Nikkei Newspaper interview with Neil Newman, for his views on the impact this would have on markets, the yen, and political stability in Japan.
The LDP suffered a major defeat in the House of Representatives election on Sunday, a result that was not wholly unexpected. Our Head of Strategy, Neil Newman was interviewed by the Nikkei Newspaper for his views on the impact this would have on markets, the yen, and political stability in Japan.
The Nikkei article looks at why the LDP had become so unpopular with the electorate, centered mainly on the cost of living making people's lives increasingly difficult, while politicians were receiving bribes and kickbacks.
Politics and the stock market are not that closely related so the negative impact on the market will be limited, there may be some positives as the political risk is lowered as the new Japanese government is so weak.
The fundamentals of the economy, such as changes in corporate governance and favorable corporate earnings, will not change after the election and remain strong drivers in the equity market.
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