I posted on the Japanese election risk yesterday:
With the info:
The political background to this:
- Japan will hold upper house by-elections this weekend, with the results seen as a key test for Prime Minister Shigeru Ishiba’s leadership.
- Election marks a crucial test for Ishiba’s minority government too, which aims to retain a simple majority alongside its Komeito coalition partner amid sliding approval ratings, growing public concern over the rising cost of living, and broader economic concerns.
- While the ruling coalition is not at risk of losing overall power, a poor showing could weaken Ishiba’s position and embolden opposition parties, many of which are campaigning on tax cuts and expanded fiscal stimulus.
- The outcome could influence the direction of economic policy, including budget negotiations and the balance of power in the Diet, with potential market implications if more populist or spending-heavy policies gain traction.
Nikkei reporting again today that Ishiba's ruling coalition risks losing his majority.
