Kishida’s Big Win Creates Space to Pursue ‘New Capitalism’

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Fumio Kishida places a paper rose on an LDP candidate’s name, to indicate a victory in the upper house election, on July 10.Photographer: Toru Hanai/Bloomberg

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By Yoshiaki Nohara and Chikako Mogi

July 11, 2022 at 4:56 AM UTC

Updated on

July 11, 2022 at 8:22 AM UTC

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Japanese Prime Minister Fumio Kishida’s strong election victory presents him with a three-year time frame to pursue his own agenda of making capitalism fairer and greener, with no need to quickly change course on economic policy including central bank stimulus.

That view was largely backed up by market moves on Monday, with the yen falling to a fresh 24-year low against the dollar as investors appeared to conclude that the easing stance of Bank of Japan Governor Haruhiko Kuroda is set to continue for now.