Shigeru Ishiba’s election as the ruling party leader caused turmoil in Tokyo shares, but the situation seems to be improving as he has adjusted his market-shaking promises since becoming Japan’s new prime minister on Oct. 1, with a snap election scheduled for the end of the month.
Analysts predict that stock prices could pick up momentum if the Liberal Democratic Party wins the Oct. 27 general election, as Ishiba has indicated a focus on measures to strengthen the economy and boost the market.
A victory for the LDP and the establishment of a stable government under Ishiba could alleviate concerns over Japan’s economic policies and encourage investors to reinvest in Tokyo shares.
Despite initial market turbulence, Ishiba’s willingness to address economic disparity through higher financial income taxes for the “super wealthy” has sparked concerns among market participants, prompting a reluctance to invest in Japanese stocks.
However, Ishiba has revised some of his pledges, reassuring investors about his economic and financial policies and highlighting the need for fiscal reconstruction without rushing into rate hikes.
Overall, Ishiba’s government aims to strengthen growth potential while maintaining stability in the market, with a cautious approach to monetary policy and a focus on effective policies to support the economy.
Market experts anticipate a stabilization of the share market as doubts about the government’s policies recede, leading to a rebound in the Nikkei index and a more favorable outlook for the economy.