Article by ForexTime
Japan held elections on Sunday and as widely expected, Prime Minster Shinzo Abe was re-elected. His ruling coalition won a two-thirds majority in parliament. These elections were seen as a referendum on Abe’s economic policy.
“I am relieved the ruling party coalition has won a majority and the government has been maintained,” Abe said on NHK news.
Japanese media reported that Mr Abe’s Liberal Democratic Party (LDP) retained its House of Representatives majority and the LDP will govern with the Buddhist-backed Komeito party after the parties won 325 seats out of 475.
The main opposition party, the Democratic Party of Japan, won 73 seats, an increase of 11, NHK said.
Abe called for a snap election on November 18 and dissolved the lower house of parliament a few days later after the impact of a consumption tax hike to 8 percent from 5 percent in April pushed the economy into recession. Abe also delayed a second sales tax hike to 10 percent, initially scheduled for October 2015, by 18 months amid concerns that it could further derail growth momentum.
Free Reports:
The decision to call elections came as Abe’s approval ratings faltered. In November, a poll by national broadcaster NHK showed support for Abe’s LDP-led government declining 8 percentage points from the previous month to an all-time low of 44 percent amid increasing uncertainty over his effort to spur the economy.
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