Ishiba's Election Setback Raises Red Investor Flags Over Japan
Date
10/29/2024 9:05:07 AM
(MENAFN- Asia Times)
Japan's ruling Liberal Democratic Party (LDP) has suffered a substantial Political setback, leaving Prime Minister Shigeru Ishiba with a fractured mandate after failing to secure a majority in the lower house election on October 27.
For global investors, this outcome adds yet another layer of uncertainty in a world already grappling with economic volatility, inflationary pressures, geopolitical tensions and a highly uncertain US election.
Although Ishiba will likely manage to pull together some form of coalition government, the fragility of such an arrangement casts doubt on Japan's ability to maintain a coherent economic policy.
Investors will be particularly cautious as a weakened government often struggles to implement long-term reforms, let alone respond decisively to sudden economic shifts.
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