The Scene Is Set For Abenomics Act II (by Joyce Poon, GaveKal Capital) - On Sunday, Prime Minister Shinzo Abe got what he wanted: a resounding victory in...

The Scene Is Set For Abenomics Act II (by Joyce Poon, GaveKal Capital) - On Sunday, Prime Minister Shinzo Abe got what he wanted: a resounding victory in Japan's snap general election; a general election he had painted as a referendum on his 'Abenomics' economic policy program. Abe's Liberal Democratic Party and Komeito, its junior partner in the ruling coalition, won 325 of the 475 seats up for grabs in the House of Representatives, maintaining their two-thirds majority in the lower house of Japan's parliament, enough to give them power to override opposition in the upper house. Although the strength of the coalition's mandate was somewhat undermined by the lowest election turnout since World War II, Abe is now expected to remain in his post until 2018, which will make him the longest-serving prime minister in four decades. More importantly, his victory will allow him to argue more convincingly that the Japanese public supports Abenomics as the best way to end deflation and revitalize the country's economy after two decades of stagnation. Cont'd: (VIEW LINK)


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