Market-watchers seem to be voicing a near consensus that Prime Minister Shinzo Abe’s resignation won’t immediately mean swerves in Japan’s economic agenda.
While stocks slumped amid surging volatility following the news of Abe’s exit Friday, expectations for policy continuity are prompting some money managers to say the nation’s shares are a buy. Currency-watchers say the yen could add just a little more to its rally from Friday while in bonds land, Treasury yields are seen having a bigger influence on Japanese Government Bonds with the Bank of Japan likely to persist with its ultraeasy policy under Gov. Haruhiko Kuroda.
The race to replace Abe is starting to take shape as candidates declare their intent to the inner circles. Chief Cabinet Secretary Yoshihide Suga has decided to run for ruling Liberal Democratic Party’s leadership election to succeed his boss, local newspapers Yomiuri and Asahi reported, while former Defense Minister Shigeru Ishiba has said he will decide whether to run or not, after seeing what election method will be used, Kyodo reported Sunday.
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