Japan’s New Prime Minister Suga Set To Continue ‘Abenomics’

By Staff of Admiral Markets

Access To Financial Markets Made Easy • Sep 16, 2020 at 5:52 AM EDT

Suga calmed markets with his plan to continue 'Abenomics' and keep half of predecessor Shinzo Abe's team.

Yoshihide Suga was formally voted in as Japan's new prime minister by parliament's lower house and is now the first new leader in nearly eight years. Suga calmed markets with his plan to continue 'Abenomics' and keep half of predecessor Shinzo Abe's team.

Japan's new prime minister Suga set to continue 'Abenomics'

Shinzo Abe was Japan's longest-serving prime minister but had to resign due to ill health. Suga previously served under him in the role of chief cabinet secretary but is set to implement structural reforms to revive the Japanese economy.

Suga has a lot of issues to quickly gain control of:

A battered economy due to Covid-19
A rapidly aging population
Intensifying US-China tensions.

The continuity of the cabinet under Suga has calmed many investors who have backed Sinzo Abe's 'Abenomics' policies to boost the country's money supply and government spending while making the economy more competitive.

The positive tones also helped to lift global stock indices. Although a weakening dollar throughout the session also helped provide some support. Traders will now be focused on Wedensday's FOMC Press Conference and the next actions from the US Federal Reserve.

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