Katsunori Kitakura, lead strategist at SuMi Trust, explains why investors have cause to be optimistic following Shinzo Abe's re-election.
The Liberal Democratic Party (LDP), led by Prime Minister Shinzo Abe, secured a majority in the Lower House snap election held on 22 October, with over 280 of 465 seats contested. How positive is Abe win for Japanese equities? Combined with seats gained by its coalition partner, Komeito, the LDP-Komeito bloc will hold over 310 seats, or two-thirds of the total, enough to call for a constitutional revision. This overwhelming victory represents a vote of confidence in 'Abenomics' and indicates Abe's signature policies of fiscal stimulus and large scale monetary easing are set to cont...
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