TOKYO: “While it will continue to have its critics, Abenomics represents Japan’s best chance of ending decades of stagnation. The sun may yet rise for Japan with Abe at the helm,” says Louise Dudley, global equities portfolio manager at Hermes Investment Management. “While the efficacy of Abenomics has been under scrutiny since it was unleashed on a Japanese economy in the doldrums, it has begun to bear fruit; corporate profits have recovered, the jobs-to-applicants ratio has improved and the Nikkei stock market is at a 20-year high.” The yen is weaker and Japanese stocks are making gains after Shinzo Abe’s victory in the country’s general election renews the mandate for his Abenomics stimulus policies. Tokyo’s Topix index has risen as much as 1 per cent following with the Nikkei 225 index rose up as much as 1.2 per cent, on course for a 15th day of gains, matching an almost 30-year record for such a winning streak.
The prime minister’s ruling Liberal Democratic party-led coalition secured a two-thirds parliamentary “super majority” that gave Mr Abe a fresh mandate for “Abenomics”, and the chance to pursue his agenda of revising Japan’s postwar constitution. The prospect of more stimulus sent Japan’s currency down by as much as 0.5 per cent against the dollar, touching a three-month low of ¥114.10. The yield on Japan’s 10-year government debt held steady at 0.07 per cent.
