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The Nikkei index gained 1.8% at the end of the session.
The choice of the new prime minister Shigeru Ishiba dissolving the Chambers turned out to be a gamble: in yesterday’s early elections, his party lost its majority for the first time since 2009.
The 67-year-old Ishiba, a long-time politician who became leader of the Liberal Democratic Party in his fifth attempt at the end of September, had promised to clean up the party’s tarnished image after the forced resignation of numerous leading figures, including ministers from the previous executive.
From the previous 288 seats obtained in the 2021 elections with its center-right ally Komeito, the LDP will not be able to reach the simple majority of 233, the “minimum wage” that Ishiba was aiming for, out of a total of 465 contested in the chamber more influential than the Diet.
However, the main opposition force, the Constitutional Democratic Party (CDPJ), represented by former Prime Minister Yoshihiko Noda, and the centrists of the Democratic Party for the People (DPP), the latter indicated by observers as possible new allies of the conservatives, exceeded expectations. to guarantee governability, despite differences in fiscal matters.
Furthermore, the response of the voters reduces the aspirations of the more nationalist wing of the party which has been fighting for decades for the revision of the pacifist Constitution, for which two thirds of the majority of the Lower House, or 310 seats, are needed to give the debate followed by a referendum.
An impediment that could preclude a reorganization project at a geopolitical level, and which, according to observers, would not exclude an abrupt change at the top of the LDP itself; a process of atoning for one’s responsibilities not foreign to Japanese scholarship.
Negative reaction on the currency front. The yen is at its lowest level in the last three months against the USD at 153.5, +0.8%.
Effect
Technical Analysis. The long-term setting of the Nikkei 225 remains firmly bullish, even if a “tormented” trend has prevailed over the last year…
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