Abe Shooting Provokes Questions On Policy Continuity

Japan's Prime Minister Kishida has cancelled campaigning and rushed back to Tokyo, while his office confirmed that former PM Abe was shot in Nara, without providing further information about his current condition.

• Latest reports suggest that Abe is in cardiopulmonary arrest and unconscious but there has been no official confirmation of press reports as of yet. PM Kishida will speak to reporters once he's back in the capital.
• Shinzo Abe was Japan's longest serving Prime Minister, best known for a package of policies nicknamed "Abenomics" that has defined Japan's economic strategy during the subsequent years.
• Abe's influence on the Liberal Democratic Party continued after his departure from office, as he moved to the position of a kingmaker/grey eminence. After stepping down, he was replaced by his loyal lieutenant Yoshihide Suga.
• Most recently, Abe has led Seiwa Political Analysis Council, by far the largest faction in the LDP, having 95 lawmakers (60 Representatives and 35 Councillors) as members. The faction has served as a powerful vehicle of Abe's sway over the ruling party.
• But since the election of Fumio Kishida as LDP leader and Japan's Prime Minister last autumn, tensions have emerged between the current and former heads of government, with Kishida looking to emerge from Abe's shadow and leave his mark.
• The removal of Abe's incluence on the ruling party would make it easier for Kishida to press ahead with his "new capitalism" agenda, which includes proposals such as regulations on share buybacks and a capital gains tax. We can also expect questions surrounding the sustainability of Japan's ultra-loose monetary policy to resurface soon.