After the big win of the Japanese Minister Shinzo Abe in the recently concluded election over the weekend, the expectations to a new package of relevant stimulus to lift the Japanese economy emerges alongside with the renowned Abenonomics.

Abe’s coalition, together with his allies,  took two-thirds of the seats in the upper house of the parliament after the election. The Prime Minister is expected to amend the pacifist constitution of Japan and to strengthen Abenomics.

Most of the voters agreed that Mr. Abe must focus on the security concerns as terrorism has become one  of the global concerns after the consecutive ISIS incident reports. And just recently, China and North Korea were reported of launching missiles recently. The amendment will allow military activities and enhance the national defense of the country.

During the news conference, Mr. Abe said ‘To realise revision of the constitution is my duty as LDP president. But it is not that easy, so I hope debate will deepen steadily.’

As the Prime minister signaled for a debate over the modification of the constitution, some analysts argued that Abenomics will likely be in focus since a referendum and the approval from the public will be needed for the amendment.


Meanwhile, the American investors wanted a way out of the Japanese stocks for they might be losing faith in the Abenomics. Jim McDonald, chief investment strategist at the Chicago-based money manager, said that the Japanese stock market has been the worst-performing major stock market in the world, and that’s the No. 1 driver of these outflows.

“It’s been a change in sentiment over Japan in the last six months since they went to negative interest rates in January. That was a wake-up call to investors that Japanese policy makers were starting to run low on ideas,” Mr. McDonald added.

Amid the uncertainties, Mr. Abe made it clear that he will move ahead strongly and would like to put forward comprehensive and bold economic measures. In line with this, the government might push for a stimulus package worth $99 billion or much more.

Speaking after his victory, Mr Abe confirmed that they are going to make bold investment into seeds of future growth and he wants to develop the agricultural sector. “We have promised through this election campaign that we will sell the world the agricultural products and tourism resources each region is proud of.”


Socite Generale, a multinational banking and financial services company noted that voters concerned about economic revival and social security reform, and that there is very little public appetite for constitutional reform.

“It is unlikely that the Abenomics policies and the economic policy agenda will be abandoned in exchange for constitutional reform after the upper house election.”Tobias Harris at Teneo Intelligence, a geopolitical risk consultancy believed that Mr. Abe will probably reshuffle or replace his cabinet members. Speculations were raised that Mr. Abe might change Finance Minister Taro Aso, Justice Minister Yoko Kamikawa and the minister of Okinawa.

Separately, as Prime Minister Abe signaled for another stimulus, the Japanese stocks traded higher, headed by the banking and finance & investment division in contrary to the previous view on the investment health of Japan. The Nikkei 225 increased by 3.98 percent, while the Nikkei Volatility slipped by 3.88  percent. 

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