MNI China Daily Summary: Monday, October 28

RPT-MNI INTERVIEW2: Trump Stagflationary For EZ-ECB's Wunsch

MNI BRIEF: PBOC Launches Outright Reverse Repo For Liquidity

MNI: PBOC Net Injects CNY32.7 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Higher At 7.1307 Mon; +2.71% Y/Y

CHINA PBOC CONDUCTS CNY241.6 BLN VIA 7-DAY REVERSE REPOS MON

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL OCT INDEX 70.5

MNI: BELGIUM OCT BNB BUSINESS SURVEY -12.8

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

POLITICAL RISK: Japan Political Uncertainty Rises As LDP Loses Majority

POLITICAL RISK
Homepagemarkets-real-timePolitical RiskCommoditiesPolitical Risk BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets

Japan faces a period of political uncertainty after weekend lower house elections from Sunday showed the LDP coalition had lost its majority. 

  • Local media has reported that the LDP has fallen to 191 seats (losing 56), while its partner, the Komeito Party had 24 seats, so a total of 215 seats, short of the 233 required for a majority (per Yomiuri, see this link).
  • The second largest holder of seats is the Constitutional Democratic Party of Japan, which gained 50 to bring its total to 148 seats. Its leader, Yoshihiko Noda will reportedly discuss forming coalitions to remove LDP from power, but is likely to struggle to get to 233 level required.
  • Some coalition possibilities for the LDP include the Democratic Party for the People (DPP) see this link. Although what comprises on policy that need to maintain a coalition will be key market watch points.
  • The DPP reportedly said yesterday that they won't join an LDP coalition.
  • Another possibility is the Innovation Party, which reportedly won 35 seats. Again differences in policy outcomes are likely to be in focus. This party opposes further BoJ rate hikes.
  • Still these minor parties may help the LDP coalition stay on as a minority government.  
202 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Japan faces a period of political uncertainty after weekend lower house elections from Sunday showed the LDP coalition had lost its majority. 

  • Local media has reported that the LDP has fallen to 191 seats (losing 56), while its partner, the Komeito Party had 24 seats, so a total of 215 seats, short of the 233 required for a majority (per Yomiuri, see this link).
  • The second largest holder of seats is the Constitutional Democratic Party of Japan, which gained 50 to bring its total to 148 seats. Its leader, Yoshihiko Noda will reportedly discuss forming coalitions to remove LDP from power, but is likely to struggle to get to 233 level required.
  • Some coalition possibilities for the LDP include the Democratic Party for the People (DPP) see this link. Although what comprises on policy that need to maintain a coalition will be key market watch points.
  • The DPP reportedly said yesterday that they won't join an LDP coalition.
  • Another possibility is the Innovation Party, which reportedly won 35 seats. Again differences in policy outcomes are likely to be in focus. This party opposes further BoJ rate hikes.
  • Still these minor parties may help the LDP coalition stay on as a minority government.