Primed for a rebound: Japanese stocks ready to flex their muscles again

Deep Dive into Japanese equities

After a record eight years of political continuity, Japan has a new Prime Minister, with Yoshihide Suga winning the Liberal Democratic Party leadership race to succeed Shinzo Abe, who had to resign due to ill health.

As the former Chief Cabinet Secretary in the Abe administration, Suga was voted in to be the steady hand and continue Abe's policies to steer Japan's economy through the current Covid-19 crisis.  Any lessons for the West from Japan's experience? The fact that the Japanese stockmarket hardly reacted to the leadership transition suggests investors expect the status quo to be maintained.  The Japanese stockmarket thrived under the stewardship of Abe, as the three arrows of 'Abenomics' sought to revitalise the Japanese economy. While Suga has pledged to continue with Abenomics, he h...