On 3rd September, Prime Minister Yoshihide Suga announced that he would not run for the Liberal Democratic Party (LDP) presidency, scheduled on 29th September. This means that Suga will step down as Prime Minister when his term as LDP President ends on 30th September.
This development has provided a boost to the Japanese stock market, as it reduces the risk of the LDP losing a large number of seats in the lower house election, which was widely feared under the Suga leadership. In addition, signs that Covid-19 infections are peaking out has also lent support to the market. The Nikkei Stock Average regained the symbolic 30,000 yen mark at the close of the Tokyo stock market on 8th September.
Written by Yuko Iizuka, Economist, Asset Management One Co., Ltd.
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