Japan’s next general election will be held on Sunday 16th December, and will establish who is to be installed into the House of Representatives. Voting will take place in all of Japan’s Representative constituencies for the 46th general election since 1890.
There is particular significance placed on this general election since the Democratic Party (DPJ) will not be able to hold onto the whole of the government – this is sure to create instability, and looks set to have a substantial impact on the world’s economy.
Shinzō Abe’s Liberal Democratic Party are expected to eat away at the lead held by the Democratic Party of Japan enough to unsettle the government – former Prime Minister Abe’s party should win the election overall, though may not be able to form a majority government.
There has also been furore surrounding the judgement from Japan’s Supreme Court, which declared the results of the previous election “unconstitutional” – essentially a vote from the Kochi district on Shikoku was held equal to 2.43 votes to the more populous Chiba prefecture. The ruling is not due to take effect in time for the elections this month as it was not passed in time – that is unless the Supreme Court intervenes.
Japan’s economy is enormous – the third largest in the world – and regardless of the result of the election, the fact that it’s happening is almost certain to hold significance for market trends around the world. Only the United States and China have larger economies, and it’s uncertain whether there’s much hope of a Coalition arrangement like several major players including the UK have at the moment.
A spokesperson for FX Solutions commented: “Results are expected very early next week. Abe’s LDP is expected to win though it isn’t clear whether he will have enough of a clear majority to form a government without some type of coalition power sharing. An LDP victory could have a strong impact on the Japanese economy.”