24 Mar 2015
Strong equities and wages means extra support for Abenomics – Nomura
FXStreet (Barcelona) - Yujiro Goto, FX Strategist at Nomura, notes that Japanese PM Abe’s popularity has been increasing, and the stronger equities and planned wage hikes in the new FY will only give additional support for to Abenomics.
Key Quotes
“The popularity of Prime Minister Abe’s cabinet remains high, according to the opinion poll conducted by Nikkei. The Abe cabinet’s approval rating inched up to 51% in March from 50% the previous month.”
“47% of respondents said Abenomics would not improve the economy while only 36% judged the economy would be better thanks to Abenomics.”
“Nonetheless, the strong performance of Japanese equities may have boosted the popularity of the Abe cabinet for now.”
“Wage increases into the new FY should also affect Prime Minister Abe's popularity and support for Abenomics.”
“Mr Abe’s decision to delay the consumption tax hike last November should also contribute to higher real wages in FY2015, which could work positively for the popularity of his cabinet going forward.”
Key Quotes
“The popularity of Prime Minister Abe’s cabinet remains high, according to the opinion poll conducted by Nikkei. The Abe cabinet’s approval rating inched up to 51% in March from 50% the previous month.”
“47% of respondents said Abenomics would not improve the economy while only 36% judged the economy would be better thanks to Abenomics.”
“Nonetheless, the strong performance of Japanese equities may have boosted the popularity of the Abe cabinet for now.”
“Wage increases into the new FY should also affect Prime Minister Abe's popularity and support for Abenomics.”
“Mr Abe’s decision to delay the consumption tax hike last November should also contribute to higher real wages in FY2015, which could work positively for the popularity of his cabinet going forward.”