New Japanese political leaders greeted with economic optimism

 

In addition to the Nikkei 225 index’s one percent rise, the Japanese currency, the yen, has also fallen to a 20 month low against the US dollar.

Liberal Democrat leader, Shinzo Abe, has made it part of this election promise that he will implement measures that will help revive what is the world’s third-largest economy. This includes taking steps to weaken the yen and fight deflation.

Mr Abe has said that he will set a target of as much as 3 percent rate of inflation and even suggested that Japan's central bank, the Bank of Japan (BOJ), should print "unlimited yen" to help counter falling prices.

Analysts said that given the indications of a convincing win, Mr Abe should be able to introduce his policies, which they said may weaken the yen further.