Latest Articles and Insights

Bank of Japan

The Nikkei trades high despite downgrade of Japanese debt and banks

Moody's Investors Service have downgraded the Japanese sovereign debt over the decision of the Japanese government to postpone the planned increase of the consumption tax until April 2017. The Nikkei Asian Review reports that Moody’s decision is based on doubts whether the country can reach primary balance fiscal surplus by 2020, which was one of the main goals of the current administration.

FSA Japan

Changes in M&A rules for regional banks

According to the Nikkei Asian Review, effective from 1 December,  the Japanese Financial Services Agency removes a number of restrictions to M&A activities for bank holding commpanies. The changes are primarily  inteded to encourage consolidation of Japan's regional banks and ultimitaely a greater access to loans for small and medsize enterprises, which unlike big corportations depend primarily on banks for funding. 

Shinzo Abe

Abenomics at centre of electoral struggle

The Nikkei Asian Review examines the results of Abenomics so far,  by comparing the progress in five areas  - the Nikkei stock average,  unemployment rates, GDP growth rates, conumption expenditure levels and national debt - between 2012 and 2014.

Bank of Japan

Minutes reveal debate over quantitative easing

Released minutes reveal the Bank of Japan board doubts regarding the additional quantitative easing, voted 5 to 4 by the board earlier this month. Read more in the 26 November edition of the Nikkei Asian Review. 

House of Representatives

DPJ releases manifesto ahead of tough elections

On 24 November, the embattled opposition Democratic Party of Japan (DPJ) announced its election manifesto with focus on reviving a wealthy middle class and reducing the wealth gap, effectively calling for a reversal of Abenomics, which the DPJ claims to have exacerbated the living conditions in the past years.

Sadakazu Tanigaki

How many is enough?

As PM Abe is expected to dissolve the lower house this afternoon, some differences within the ruling coalition begin to emerge over numbers.

Kazuo Kitagawa

Sales tax hike to be coupled with reduced tax for basic commodities

Mainichi Shinbun reports that at a meeting on 19 November, the LDP Chairman of the Research Commission on the Tax System, Takeshi Noda and Komeito’s deputy head Kazuo Kitagawa agreed on a reduced tax rate for some basic commodities, probably to be introduced together with the sales tax hike in April 2017. 

Shinzo Abe Election

Elections in time for a win

In what is purportedly the first forecast for the upcoming lower house election, a Toyo Keizai article form 18 November nails the numbers for Japan’s top two parties, LDP and DPJ at 271 (from 294) and 86 (from 55) respectively, while dubbing the upcoming vote “Elections in time for a win”.