“Forecasts published last week predicted Abe’s coalition would win around 300 seats, close to the two-thirds super-majority it held before he called the election. Along with like-minded parties, the LDP bloc also has a majority in the upper house, which would be needed to revise the constitution,” reports Reuters. “However, some 48 percent wanted his bloc to obtain a smaller majority, while 20 percent hoped the ruling camp would retain the 323 seats it held before the lower house was dissolved last month. Seven percent wanted the ruling bloc to win more seats.”
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Japanese equities also show more attractive valuations, compared to the pricier U.S. markers. For instance, EWJ shows a 15.42 price-to-earnings and a 1.2 price-to-book, whereas the S&P 500 index is trading at a 18.9 P/E and a 2.6 P/B.
DBJP jumped 2.5% last week and is higher by 4.5% over the past month.
For more information on the Japanese market, visit our Japan category.