Japanese Prime Minister gained a brand new time period as president of the ruling Liberal on Tuesday after dealing with no opposition for the job.
Advertisement
Investors appeared to be encouraged by Prime Minister Abe’s statement pledging next year to cut Japan’s corporate tax rates, which rank among the world’s highest.
The Nikkei, which had earlier hit its lowest level since February, bounced after comments by Prime Minister Shinzo Abe that raised expectations of more policy measures to shore up economic growth under his “Abenomics” stimulus program.
Meanwhile, revised data on Japan’s gross domestic product (GDP) showed Tuesday that the Japanese economy shrank less than expected in the second quarter of this year, thanks to a boost in inventories, although capital expenditure fell more than originally forecast. He was the LDP president during his first Cabinet in 2006.
Fifteen economists who responded to a Reuters poll overwhelmingly said Abe in his next term should put priority on regulatory reform of the labor market and repairing a social security system burdened by a fast-ageing population.
Abe is scheduled to visit the United States late this month to attend the U.N. General Assembly.
However, the LDP’s executive office attempted to avoid debate in a bid to demonstrate party unity to the public toward the end of the current Diet session, and legislators belonging to the party hesitated to make their assertions with an eye to a personnel reshuffle following the leadership race.
Government spokesman Yoshihide Suga said Tuesday that Abe would continue to try to revive the economy and “restore Japan’s greatness”. “We’ll completely overcome deflation via a virtuous economic cycle and achieve powerful economic growth”, he said.
Noda was seeking support from lawmakers close to her until the last minute to avoid Abe’s reelection without a vote.
Noda faced pressure within the LDP to abandon running in the party presidential election in various ways.
Advertisement
Abe and his supporters say the bills are necessary to deal with a changing security environment marked by an increasingly assertive China and unpredictable North Korea.
