The LDP secures an absolute majority in the lower house elections on 31 October, confirming the continuation of the Kishida government.
Expansionary fiscal policy expected to continue ahead of the upper house elections in July next year.
Political stability is a positive factor for share prices, but policies that raise medium- to long-term growth expectations are needed to support further gains.
Written by Yuko Iizuka, Economist, Asset Management One Co., Ltd.
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