The stock market index increases by 1.5%, the yen down to the lowest in 20 months. Abe supprts a policy of "printing unlimitled yen". The problem of the Senkaku / Diaoyu and strained relations with China. Best wishes of President Obama, warning from Beijing.

Tokyo (AsiaNews / Agencies) - The Tokyo Stock Exchange and the Japanese markets have reacted positively to the results of the parliamentary elections, announcing a great victory for Shinzo Abe and the Liberal Party (Liberal Democratic Party, LDP). The Nikkei index rose 1, 5% and the yen fell to 84.48 against the dollar, the lowest level for at least 20 months.

The official results will be made public later today, but according to projections the LDP gained 294 seats (up from 118), together with the right-wing party New Komeito (31 seats, from 21), the Abe's coalition will have two-thirds of the lower house (which has 481 seats), a vast majority that will allow them to easily implement the policies proposed during the campaign. The Prime Minister Yoshihiko Noda has already accepted defeat.

From the economic point of view Abe has vowed to fight the strong yen and reduce deflation. In recent years the yen increasingly evaluated in raising the price of Japanese goods, mainly for export. The problem is so severe that many Japanese companies have planned to relocate their facilities to poorer countries to maintain competitiveness, creating new employment problems in Japan.

Another element promised Shinzo Abe is the ease of borrowing. Keeping inflation at 3%, could push the central bank to print "unlimited" yen.

The overwhelming victory - said Abe - generates a "great responsibility."

In addition to the decisions on the economy, the new prime minister must find a way to deal with China, after rising tensions over mutual sovereignty claims on the Senkaku / Diaoyu. Abe is known as a "hawk" in foreign policy and in the past has demanded that Japan change its pacifist constitution, acquiring an army and attack options. Yesterday he said that his party must "stop the challenge" that comes from China. But he stressed that it is necessary to build "good relations in the national interest of the two countries": Abe believes China lacks the recognition of "mutual beneficial strategic relations."

The United States has congratulated Abe. President Barack Obama has said he hopes to "work closely" with the new government. China, however, by the mouth of Xinhua, has warned Japan from veering "right so quickly." "History - it adds - has shown many times that a peaceful Japan is an advantage for the region, while a restless Japan will bring new problems to the world."

 

• japan
• shinzo
• abe
• ldp
• voctory
• elections
• economy
• china
• relations