In response to Fumio Kishida’s decision not to seek a new mandate for the Liberal Democratic Party, which holds the majority in the Tokyo parliament, the latter has just elected a new leader, called to become the new Japanese Prime Minister.
This is Shigeru Ishiba, an old roadman of politics. He previously held several posts as Minister (of Defence, Fisheries and Agriculture, and Rural Revitalization). He was primarily the political opponent of Shinzo Abe, whose enthusiasm for reforms he did not appreciate.
So, we should not expect significant innovations or enthusiasm for economic reforms and corporate governance that have marked Japan in recent quarters, allowing the Japanese market to rebound.
Nevertheless, the Tokyo market should continue to benefit from the reform momentum of the Kishida period. We continue to invest in them as part of all our diversified portfolios.