FLASH
Japan: Reinforcing Takaichi’s Castle - A landslide victory for fiscal expansion
Guy Ertz, Deputy Global Chief Investment Officer, and Stephan Kemper, Chief Investment Strategist, BNP Paribas Wealth Management
Key Messages
1. PM Takaichi-san has secured a landslide victory, securing a two-third supermajority for her party.
2. We expect that the LDP to use the new-found strength to increase fiscal programs and boost public spending via a “Japan growth Strategy”. Japan is looking to increase its strategic autonomy and indispensability.
3. The resulting impact should provide tailwinds to the impacted sectors and the overall market. Valuations are advanced but we see room for further earnings growth.
