Because it was anticipated and already factored in by market players, the defeat suffered by Prime Minister Shinzo Abe's Liberal Democratic Party in Sunday's election will have little impact on stocks, experts say.
Still, some analysts warned Monday that if the LDP's defeat — which was worse than expected — leads to political chaos, stock prices could trend lower and delay the Bank of Japan's decision to hike interest rates and stall fiscal reform.
This could hurt the economy in the long term.
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