You are here: Home - Investing - Experienced Investor - News -

Nikkei drops despite Abe triumph in snap election

0
Written by:
15/12/2014
Shinzo Abe’s Liberal Democratic party has swept to victory again in the snap Japanese election held over the weekend.

The Liberal Democratic Party won a convincing 290 seats out of 475 available in the powerful lower house of the Japanese parliament.

Abe called the election after arguing he needed a clear mandate to push back a planned sales tax hike and described the poll as a referendum on his economic policies, dubbed Abenomics.

The sales tax was due to rise from eight per cent to 10 per cent next October after rising from five per cent in April.

The Nikkei fell 1.7 per cent to 17,099 in response in Abe’s victory, however, as an underwhelming quarterly business survey hit sentiment.

Japan has seen a difficult year economically, falling into technical recession last month, and the sales tax was at least partly blamed for the poor performance.

Abe was initially elected in 2011 and his Abenomics programme promised to revive the economy through its “three arrows”.

These are fiscal stimulus, monetary easing and structural reforms. Although Abe managed to achieve some growth early in his term, the sales tax dulled the effects of monetary stimulus, prompting renewed action in late October.

Analysts also suggest that the final arrow is proving harder for Abe’s government to implement.

Speaking after the results were announced, Abe said that the election had been a “mandate” for delaying the tax rise and continuing with the Abenomics programme.

He added that he is now targeting wage rises, which have fallen behind consumer price rises, alongside third arrow reforms of areas such as agriculture.

The election saw a record low turnout among Japanese voters, estimated at only 53.3 per cent, a figure the government attributed to apathy and poor weather conditions.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Registered deaths down 13% in 30 years

The number of registered deaths in the UK in 2013 was 576,458, down 13 per cent from the number in...

Close