The landslide victory in Japan for the party behind Abenomics is likely to be good news for industries from nuclear power to defence, while posing challenges to others such as retailers.
Prime Minister Shinzo Abe’s ruling coalition retained its two-thirds majority in the lower house in Sunday’s election, paving the way for more ultra-easy monetary policy that has boosted Japanese stocks to the highest level in two decades and helped Asia’s second-biggest economy expand for six straight quarters. At the same time, pressure is growing for Abe to increase stagnant wage growth and overhaul the labour market to replenish a rapidly aging workforce.
“Corporate Japan is determined to play a role in rebuilding our economy and is cooperating with the Abe administration’s strategy,” Sadayuki Sakakibara, chairman of Japan’s main business lobby Keidanren, said in a statement.
The Nikkei 225 Stock Average on Monday capped its longest winning streak on record, gaining for a 15th straight day amid expectations corporate earnings will benefit from the continuation of ultra-easy monetary policy.