Shinzo Abe(pronounced ah-bay) has been elected the new Prime Minister of Japan.His LDP Party has a 61% majority in Parliament;with a partner,the LDP will have a 68% majority.Mr.Abe had served as Prime Minister three years ago.
The question now is how they use that majority,said Mohammed Apabhai of Citi Global Markets Asia.The priority at the moment is actually controlling deflation and getting growth back on track.Reflation trades include insurers,banks and real estate.
Abe will restore nuclear power to provide affordable energy to the Japanese economy.Only two of Japan's nuclear reactors are currently on line,down to public outrage after last year's tsunami and nuclear accident.Japan's debt to GDP ratio is 237%,the highest in the world.
It's undeniable that China has really turned the corner.There's a lot of scepticism about that from clients internationally.The upside in the rest of Asia is actually a lot higher.
The Chinese Politburo will keep policy stable with adjustments as needed,accepting slower growth.It will fully deepen reforms and firmly promote opening up,the Xinhua news agency reported.
China has submitted documentation on its territorial dispute with Japan in the South China Sea to the United Nations.
Indian investors are awaiting the Royal Bank of India interest rate decision.The Nifty Fifty futures index was down 0.08%.
Australia is in talks with Sri Lanka to curb people smuggling.
The Nikkei index was up a strong 1.54% on Abe's election,while the MSCI Asia Pacific index was up by only 0.04% in early Monday trading.
Citigroup(C)
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