Japan PM Abe suffered a setback by not gaining a supermajority - TDS

In the view of the TD Securities Analysts, the Japanese PM Abe’s win in the Upper House election came as no surprise.

Key Quotes:

“JPY National elections in Japan yesterday resulted in a victory according to Japanese press (official results today) for Shinzo Abe’s coalition, its sixth straight victory, with the LDP winning over half the 124 seats.

The results were no surprise, and unlikely to have a significant market impact, but notably Abe suffered a setback by not gaining a supermajority.

He therefore he cannot change the country’s pacifist constitution.

What the victory does do however is likely increase the odds that the consumption tax hike goes ahead (even as 57% of respondents oppose it).”