Shinzo Abe’s key electoral victory brings even more stability

One year ago, and just days before Donald Trump’s victory, political risk was the most impending threat to market’s stability. Today such assessment has been largely reviewed thanks to the victory of centrist Emmanuel Macron in the French presidential election and of Angela Merkel for a fourth consecutive term as German Chancellor.

Asia seems to have embarked on a same trend of political continuity after doubts arose from Rodrigo Duterte’s election as President of the Philippines in June 2016. Since then, Chinese President Xi Jinping has become more powerful than ever after obtaining a second mandate from the Communist Party and Japanese Prime Minister Shinzo Abe has won a key early parliamentary election.

Despite his low approval ratings, Abe has indeed managed to make his conservative Liberal Democratic Party (LDP) win in a landslide, this way further strengthening the country’s stability and improving the market’s perspectives for the global economy in 2018.

“Although the landscape today looks very different from what it was feared by many market analysts to become one year ago, there are reasons to stay cautious as for political risk in the long run,” said Charles Rault, Cyceon’s managing director.

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