https://www.scmp.com/rss/298942/feed Abenomics described the plans of Japanese Prime Minister Shinzo Abe to revive growth in the world’s then-third largest economy, which was struggling to find traction under the impact of a strong yen and stubborn deflation. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com China should concentrate on structural reform to unleash long-term growth potential, rather than resorting to the monetary stimulus favoured by the Abenomics approach adopted by the late former Japanese prime minister, analysts said. Shinzo Abe’s three-pronged approach has long been cited by Chinese policy advisers as a warning against unconventional policy loosening even before Friday’s assassination, with the official Xinhua News Agency describing it as “ineffective, untrustworthy and a... https://www.scmp.com/economy/china-economy/article/3184893/shinzo-abe-abenomics-not-seen-answer-chinas-economic-woes?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3184893/shinzo-abe-abenomics-not-seen-answer-chinas-economic-woes?utm_source=rss_feed Mon, 11 Jul 2022 20:30:15 +0000 Japan’s largest opposition party is seeking to push forward a legal revision to enable married couples to have separate surnames by urging some members of the ruling Liberal Democratic Party to join hands with it. The development comes as a deep divide surfaced within the LDP led by Prime Minister Yoshihide Suga as to whether to introduce such an alternative to a single surname per couple. Yukio Edano, head of the main opposition Constitutional Democratic Party of Japan, plans to call for... https://www.scmp.com/news/asia/east-asia/article/3116279/japan-opposition-party-pushing-divided-liberal-democratic-party?utm_source=rss_feed https://www.scmp.com/news/asia/east-asia/article/3116279/japan-opposition-party-pushing-divided-liberal-democratic-party?utm_source=rss_feed Mon, 04 Jan 2021 00:03:01 +0000 When former Prime Minister Shinzo Abe outlined in 2014 his ambitious plan to make Japanese women “shine” in the workplace and broader society by the end of the decade, he set a series of firm targets to cement his commitment towards that goal. But the 2020 deadline Abe insisted on for his so-called “womenomics” policy has now come and nearly gone, with the country still falling short on almost all of the six key metrics that were cited as evidence of progress on gender equality. In some cases,... https://www.scmp.com/week-asia/politics/article/3110963/japan-gender-equality-was-still-shinzo-abes-do-list?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3110963/japan-gender-equality-was-still-shinzo-abes-do-list?utm_source=rss_feed Mon, 23 Nov 2020 23:00:16 +0000 In 2000, I sat in a bland grey Prague conference room opposite officials from Japan’s Ministry of Finance. We were attending a G7/International Monetary Fund meeting. I asked if they thought the US and Europe could avoid Japan’s protracted deflation. None of them could suppress a smile. “Unlikely,” said one. So far, these officials have been wrong, but just barely. European inflation is around zero, and US inflation is a bit above 1 per cent. Could Japanese-style deflation hit the United States?... https://www.scmp.com/comment/opinion/article/3107266/us-danger-japanese-style-deflation-and-what-does-mean-investors?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3107266/us-danger-japanese-style-deflation-and-what-does-mean-investors?utm_source=rss_feed Wed, 28 Oct 2020 19:30:06 +0000 Japanese Prime Minister Yoshihide Suga has set out to follow the Abe administration’s policies. Since taking office, Suga has held phone conversations with US President Donald Trump and the leaders of two US allies, Australia and South Korea. But he needs to focus on the recovery of an economy hit hard by Covid-19. And to revitalise Japan’s economy, he will have to strengthen its pro-China diplomacy. Suga made a name for himself as chief cabinet secretary. At the same time, he was the minister... https://www.scmp.com/comment/opinion/article/3102995/japans-new-prime-minister-will-find-way-stay-friends-china-and-us?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3102995/japans-new-prime-minister-will-find-way-stay-friends-china-and-us?utm_source=rss_feed Fri, 25 Sep 2020 17:00:17 +0000 By the standards of any politician, Shinzo Abe – who recently announced his resignation as Japan’s prime minister – is a hard act to follow. Over four terms of office stretching back to 2006, Abe did more to raise his country’s profile and international presence than perhaps any Japanese leader since the second world war. Along the way he became the country’s longest-serving prime minister, its youngest since the war, ushered in revolutionary economic policies that still bear his name, broached... https://www.scmp.com/week-asia/politics/article/3100313/new-rising-sun-can-post-abe-japan-leave-chinas-shadow-lead-asia?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3100313/new-rising-sun-can-post-abe-japan-leave-chinas-shadow-lead-asia?utm_source=rss_feed Sat, 05 Sep 2020 00:00:24 +0000 Few statesmen have left such an indelible mark on economic policymaking as Shinzo Abe, Japan’s longest serving prime minister, who last week announced his resignation due to ill health. His signature programme – a three-pronged plan involving aggressive monetary easing, fiscal expansion and structural reforms, designed to rescue Japan from two decades of near stagnation and on-and-off deflation – enthralled financial markets when it was launched shortly after Abe became prime minister for the... https://www.scmp.com/comment/opinion/article/3100031/abe-leaving-office-abenomics-here-stay?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3100031/abe-leaving-office-abenomics-here-stay?utm_source=rss_feed Fri, 04 Sep 2020 01:45:13 +0000 The sudden resignation of Japan’s longest-serving prime minister, Shinzo Abe, has come as a shock not only to residents of Japan, but to observers across the world. It is also a bolt from the blue for India, which has always held a special place in Abe’s heart. He was due to hold a virtual summit with his Indian counterpart, Narendra Modi, in early September. It would have been an opportunity for the two leaders to take stock of the state of relations in the wake of the Sino-Indian border clash,... https://www.scmp.com/comment/opinion/article/3099392/shinzo-abes-resignation-india-loses-its-best-friend-and-ally-japan?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3099392/shinzo-abes-resignation-india-loses-its-best-friend-and-ally-japan?utm_source=rss_feed Sun, 30 Aug 2020 06:45:08 +0000 Japanese Prime Minister Shinzo Abe should have been celebrating having this week become his country’s longest-serving leader. Instead, he announced his resignation yesterday, the reoccurrence of an intestinal disease that forced him to cut short an earlier term in office causing fatigue, which he said prevented him from capably carrying out his duties. His departure means that nationalist policies, including amending the pacifist constitution to enable a fully fledged defence force, a strategy... https://www.scmp.com/comment/opinion/article/3099341/shinzo-abes-successor-must-rise-challenge-and-build-regional-trust?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3099341/shinzo-abes-successor-must-rise-challenge-and-build-regional-trust?utm_source=rss_feed Fri, 28 Aug 2020 13:30:05 +0000 Japan’s Prime Minister Shinzo Abe on Friday confirmed he was resigning for health reasons, in a move that would end his tenure as the country’s longest serving premier. He said he had suffered a relapse of his chronic illness, ulcerative colitis, and since the middle of July his health had deteriorated and he had lost much of his energy and strength. “I have been struggling with my illness and I have to get treatment. Poor health should not lead to wrong political decisions. I should... https://www.scmp.com/week-asia/politics/article/3099224/japanese-pm-shinzo-abe-poised-resign-over-health-concerns-local?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3099224/japanese-pm-shinzo-abe-poised-resign-over-health-concerns-local?utm_source=rss_feed Fri, 28 Aug 2020 05:26:32 +0000 Japanese Prime Minister Shinzo Abe should be able to serve out the remainder of his term as party leader ending about a year from now, his right-hand man said, after recent hospital visits raised questions about the premier’s health. Chief Cabinet Secretary Yoshihide Suga, 71, said in an interview with Bloomberg on Thursday that he expects Abe to explain his health condition in a proper way. Abe is expected on Friday at 5pm to give his first full news conference since June, at which time he is... https://www.scmp.com/news/asia/east-asia/article/3099172/japans-shinzo-abe-serve-out-term-ruling-party-leader-aide-says?utm_source=rss_feed https://www.scmp.com/news/asia/east-asia/article/3099172/japans-shinzo-abe-serve-out-term-ruling-party-leader-aide-says?utm_source=rss_feed Thu, 27 Aug 2020 22:45:15 +0000 If Shinzo Abe resigns over health problems, the next Japanese prime minister might tweak policy on everything from China ties to monetary policy, without making drastic changes. Since taking power in 2012, Abe has touted unprecedented monetary easing and a flexible fiscal policy to revive the economy – a package dubbed “Abenomics”. He has worked to build a personal bond with US President Donald Trump, while at the same time seeking to smooth over ties with Japan’s biggest trading partner,... https://www.scmp.com/news/asia/east-asia/article/3098862/who-would-succeed-japanese-pm-shinzo-abe-if-he-stepped-aside?utm_source=rss_feed https://www.scmp.com/news/asia/east-asia/article/3098862/who-would-succeed-japanese-pm-shinzo-abe-if-he-stepped-aside?utm_source=rss_feed Wed, 26 Aug 2020 02:04:52 +0000 Japanese Prime Minister Shinzo Abe spent more than seven hours at a Tokyo hospital on Monday for what his aides have been at pains to insist was a routine medical check-up, though this has not ended speculation about the 65-year-old’s health and who might replace him if he has to step down. Abe, who became the country’s longest-serving prime minister in November, had his first stint in charge cut short in September 2007 after just 366 days, in part because he was chronically ill with ulcerative... https://www.scmp.com/week-asia/politics/article/3097807/japan-pms-health-question-rumours-swirl-successors-jostle?utm_source=rss_feed https://www.scmp.com/week-asia/politics/article/3097807/japan-pms-health-question-rumours-swirl-successors-jostle?utm_source=rss_feed Tue, 18 Aug 2020 08:00:17 +0000 Shinzo Abe came to the leadership of Japan in 2012 promising to end two decades of stagnation after the bursting of an economic bubble in the 1990s followed by prolonged recession. This month he became the country’s longest-serving prime minister, counting a year in office in 2006-07. But longevity does not necessarily reflect mission fully accomplished. Abe staked a deflation-busting recovery on “Abenomics”, a three-arrowed strategy to promote sustainable growth through monetary, fiscal and... https://www.scmp.com/comment/opinion/article/3039644/shinzo-abe-should-focus-reforming-japans-economy?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3039644/shinzo-abe-should-focus-reforming-japans-economy?utm_source=rss_feed Wed, 27 Nov 2019 13:57:43 +0000 Japan’s economy is not in great shape. Policies that have arguably not proven that successful in the past are being dusted off yet again. But Japan’s currency will not necessarily weaken. A cocktail of domestic economic woes might ordinarily lend itself to currency weakness but the Japanese yen has a habit of holding its own or even strengthening when Japan has problems. The year 2011 illustrates the point. In March that year, a massive earthquake and the resulting tsunami off Japan’s Pacific... https://www.scmp.com/comment/opinion/article/3039288/how-japanese-yen-stays-strong-despite-faltering-domestic-economy?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3039288/how-japanese-yen-stays-strong-despite-faltering-domestic-economy?utm_source=rss_feed Tue, 26 Nov 2019 06:00:07 +0000 Shinzo Abe is now the longest-serving prime minister in Japanese history. On November 20, he surpassed the record of General Taro Katsura, who served for 2,886 days over three separate terms more than a century ago. Abe’s time in office has been marked by successes in domestic politics and foreign policy – but his attempts to resuscitate Japan’s economy have had mixed results, and his administration is no stranger to scandal. So what has kept his position secure for so long, and how will his... https://www.scmp.com/week-asia/opinion/article/3038417/abe-japans-longest-serving-pm-extent-his-legacy?utm_source=rss_feed https://www.scmp.com/week-asia/opinion/article/3038417/abe-japans-longest-serving-pm-extent-his-legacy?utm_source=rss_feed Tue, 19 Nov 2019 23:00:18 +0000 Japan’s hosting of the Rugby World Cup already looks to be a success . Tokyo and Washington have agreed to a partial trade deal . On the surface, things are looking up for Japan. But appearances can be deceptive. The Japanese economy is not in great shape. The successful hosting of major sporting events does wonders for public morale but the economic positives can often be short lived. Tournaments come, tournaments go. As for the partial deal with the United States, what is immediately... https://www.scmp.com/comment/opinion/article/3030981/rugby-world-cup-and-us-trade-deal-successes-cant-hide-japans?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3030981/rugby-world-cup-and-us-trade-deal-successes-cant-hide-japans?utm_source=rss_feed Tue, 01 Oct 2019 05:00:08 +0000 A Japanese sales tax increase that will take effect on Tuesday is expected to have only a limited negative impact on consumer spending compared with a larger increase five years ago, but data suggests households are tightening their purse-strings amid weak consumer confidence and concerns about the sustainability of government social security programmes. Retailers have been cautious about offering aggressive discounts before the consumption tax is lifted from 8 per cent to 10 per cent on October... https://www.scmp.com/economy/global-economy/article/3030952/japan-consumers-cautious-spending-despite-expected-limited?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3030952/japan-consumers-cautious-spending-despite-expected-limited?utm_source=rss_feed Mon, 30 Sep 2019 09:00:21 +0000 Japan has vowed to go ahead with a twice-delayed sales tax hike in October, unless there is a major economic shock. But recently, the cabinet office downgraded its headline assessment of Japan’s economy for the first time in three years. Manufacturing, housing and retail indicators reflected signs of weakness, while first-quarter economic figures, expected in May, could show a contraction – especially as the impact of US President Donald Trump’s trade war spreads in Asia. The Japanese... https://www.scmp.com/comment/insight-opinion/article/3008371/japan-faces-urgent-economic-problem-sales-tax-hike-not?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/3008371/japan-faces-urgent-economic-problem-sales-tax-hike-not?utm_source=rss_feed Wed, 01 May 2019 06:30:07 +0000 On May 1, Japan will restart its clock, drawing the curtain on the Heisei era of Emperor Akihito and waking to a new – and hopefully brighter – Reiwa era of 59-year-old Emperor Naruhito.  For many Japanese, this is perhaps not a moment too soon. For a couple of years, Japan’s economists have been talking up the “true dawn” unfolding in the country, as they try to put behind them the disaster, drift and global decline of three decades of Heisei. Most of their tentative optimism has arisen from... https://www.scmp.com/comment/insight-opinion/article/3006846/does-japans-reiwa-era-promise-new-economic-dawn-even-china?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/3006846/does-japans-reiwa-era-promise-new-economic-dawn-even-china?utm_source=rss_feed Fri, 19 Apr 2019 09:00:16 +0000 Shinzo Abe, the current prime minister of Japan, has led the Liberal Democratic Party (LDP) since 2012. Abe has become best known for his push to revitalise the country’s economy and for his plan to reform Japan’s pacifist constitution. His views on Japan’s wartime past have often put him at odds with South Korea and China. Rise, fall and return Abe was born in 1954 in Tokyo to a political family. His grandfather, Kishi Nobusuke, was imprisoned as a suspected war criminal before serving as... https://www.scmp.com/week-asia/explained/article/2186462/explained-shinzo-abe?utm_source=rss_feed https://www.scmp.com/week-asia/explained/article/2186462/explained-shinzo-abe?utm_source=rss_feed Sat, 16 Feb 2019 11:34:13 +0000 The head of the IMF on Thursday called for an overhaul of Japan’s economic policy, as the world’s third-biggest economy battles stubborn low inflation, sluggish growth and a rapidly ageing population. Christine Lagarde called for a “fresh look” at “Abenomics”, the economic policy of Prime Minister Shinzo Abe, which combines ultra-loose monetary policy with fiscal stimulus and structural reforms. “We believe that it will require a revamping of policies. The basic principles in our view are still... https://www.scmp.com/news/asia/east-asia/article/2167019/imf-calls-japan-revamp-abenomics-boost-flagging-economic-growth?utm_source=rss_feed https://www.scmp.com/news/asia/east-asia/article/2167019/imf-calls-japan-revamp-abenomics-boost-flagging-economic-growth?utm_source=rss_feed Thu, 04 Oct 2018 11:10:30 +0000 Shinzo Abe has just been re-elected as president of Japan’s ruling Liberal Democratic Party, which gives him a chance to become Japan’s longest-serving prime minister. With Japan all set to host the Rugby World Cup next year and the Summer Olympic Games in 2020, Abe’s star also seems set to shine brightly. But appearances can be deceptive, and Abe has a bad habit of being stronger on slogans than performance: think Abenomics and womenomics, both of which caught the popular imagination, but have... https://www.scmp.com/comment/insight-opinion/united-states/article/2165140/so-much-shinzo-abes-womenomics-japan-inc-still?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/united-states/article/2165140/so-much-shinzo-abes-womenomics-japan-inc-still?utm_source=rss_feed Sat, 22 Sep 2018 06:31:48 +0000 Prime Minister Shinzo Abe won comfortable re-election as leader of his ruling party on Thursday, setting him on course to become Japan’s longest-serving premier and realise his dream of reforming the constitution. The 63-year-old conservative secured 553 votes against 254 won by former defence minister Shigeru Ishiba, a hawkish self-confessed “military geek”, in a two-horse race for leader of the Liberal Democratic Party. The win effectively hands Abe three more years as prime minister, giving... https://www.scmp.com/news/asia/east-asia/article/2164999/japans-abe-wins-landslide-party-vote-looks-three-more-years-pm?utm_source=rss_feed https://www.scmp.com/news/asia/east-asia/article/2164999/japans-abe-wins-landslide-party-vote-looks-three-more-years-pm?utm_source=rss_feed Thu, 20 Sep 2018 06:15:06 +0000 Are Japanese Prime Minister Shinzo Abe's Abenomics policies dead? Bigger things (the Trump-Kim summit and threatened trade wars) have overshadowed recent developments in Japan, but these developments could affect the balance of power in East Asia. Abenomics was designed to finance a growing economic and strategic role for Japan in Asia and beyond. An economically more powerful Japan could then become stronger militarily and strategically, counterbalancing China. But Abenomics was sold to the... https://www.scmp.com/comment/insight-opinion/article/2151988/abenomics-dead-japans-economy-needs-more-fundamental?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2151988/abenomics-dead-japans-economy-needs-more-fundamental?utm_source=rss_feed Fri, 22 Jun 2018 08:31:49 +0000 For Silicon Valley, this has been a certifiably nutty month. Between Elon Musk’s bizarre musings, governments chiding Facebook and Google, Snapchat bleeding advertisers and White House schizophrenia on ZTE, innovators and investors alike are probably drinking less coffee and more California red. But the biggest disruption of the last 30 days came from the East -– from Japan’s billion-dollar man. No one is upsetting the Silicon Valley apple cart more than SoftBank’s Masayoshi Son. Over the last... https://www.scmp.com/business/companies/article/2147780/asias-us200-billion-man-would-be-better-placed-consider?utm_source=rss_feed https://www.scmp.com/business/companies/article/2147780/asias-us200-billion-man-would-be-better-placed-consider?utm_source=rss_feed Sun, 27 May 2018 03:03:21 +0000 Record high asset valuations, a crowded market with more managers seeking to put capital to work have combined to make deal-sourcing challenging for private equity sponsors, said Stephen Pagliuca, co-chairman of Bain Capital. That might sound overly humble for a private equity investment firm with total asset size of US$39.75 billion, which realised US$87 billion revenue from portfolio companies in 2016. But Pagliuca said private equity investors can no longer pin their hopes high on selling... https://www.scmp.com/business/companies/article/2120271/bain-capitals-stephen-pagliuca-sees-lower-exit-multiples-globally?utm_source=rss_feed https://www.scmp.com/business/companies/article/2120271/bain-capitals-stephen-pagliuca-sees-lower-exit-multiples-globally?utm_source=rss_feed Fri, 17 Nov 2017 04:02:02 +0000 Is Japan finally about to add more to Asian growth than its deflation subtracts? Prime Minister Shinzo Abe’s sealing a giant trade deal with the European Union is one reason to bet on increased GDP. But the real boost may come from his comeuppance in recent Tokyo elections. Abe wasn’t on the ballet, but his Liberal Democratic Party took a pounding. It was the first opportunity for voters to punish Abe for a spate of scandals and unpopular policy moves, and they did. Japan PM Abe stung by scandal... https://www.scmp.com/comment/insight-opinion/article/2102154/why-abes-tokyo-election-debacle-may-create-ripples-beyond?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2102154/why-abes-tokyo-election-debacle-may-create-ripples-beyond?utm_source=rss_feed Tue, 11 Jul 2017 06:52:35 +0000 Donald Trump was elected to “make America great again”. Who knew the US president might have better odds warming Sino-Japanese relations? Though I strongly doubt Trump will raise my country’s political or economic game, some early missteps are having unintended consequences in North Asia, and perhaps for the better. His threats to attack North Korea, for example, gave Shinzo Abe and Xi Jinping (習近平) common ground for cooperation. Killing the Trans-Pacific Partnership (TPP), meanwhile, left Abe,... https://www.scmp.com/comment/insight-opinion/article/2095802/why-japan-plainly-needs-asia-pivot-chinas-direction?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2095802/why-japan-plainly-needs-asia-pivot-chinas-direction?utm_source=rss_feed Sun, 28 May 2017 04:03:21 +0000 What is wrong with Shinzo Abe, Japan’s prime minister? He has huge majorities in parliament and economic growth is picking up, but he also has a host of difficult political, diplomatic, economic and social issues to sort out. Yet, he has added a new, more contentious and potentially explosive problem, which he has declared he will sort out by 2020. Supporters say he wants to claim “his place in history”, which is why he set so much store by winning the Olympics for Tokyo in 2020, and is getting... https://www.scmp.com/comment/insight-opinion/article/2095668/shinzo-abes-2020-vision-new-japan-should-worry-japanese-and?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2095668/shinzo-abes-2020-vision-new-japan-should-worry-japanese-and?utm_source=rss_feed Fri, 26 May 2017 01:19:36 +0000 Japan’s ruling party approved a change in party rules Sunday that could pave the way for Prime Minister Shinzo Abe to become the country’s longest-serving leader in the post-second world war era. It is a remarkable turnaround for Abe, who lasted only a year during an earlier stint as prime minister, and in a country that had six prime ministers in the six years before Abe returned to office in December 2012. Analysts say that Japan’s 62-year-old leader learned from his first term in office, when... https://www.scmp.com/news/asia/east-asia/article/2076182/rule-change-could-make-shinzo-abe-longest-serving-leader-japan?utm_source=rss_feed https://www.scmp.com/news/asia/east-asia/article/2076182/rule-change-could-make-shinzo-abe-longest-serving-leader-japan?utm_source=rss_feed Sun, 05 Mar 2017 15:00:00 +0000 Japan denied on Wednesday US President Donald Trump’s accusation that Tokyo has been seeking to devalue the yen, saying that it is not manipulating the foreign exchange market. Foreign exchange rates are led by the markets. We are not manipulating them Masatsugu Asakawa, vice finance minister for international affairs Trump’s remarks left Japanese authorities on guard against speculative yen-buying, prompting them to stress that the Bank of Japan’s monetary policy is not aimed at devaluing the... https://www.scmp.com/news/asia/east-asia/article/2067148/japan-denies-trumps-currency-manipulation-charge?utm_source=rss_feed https://www.scmp.com/news/asia/east-asia/article/2067148/japan-denies-trumps-currency-manipulation-charge?utm_source=rss_feed Wed, 01 Feb 2017 05:58:25 +0000 Almost four years after Japan’s Prime Minister Shinzo Abe launched “Abenomics” to revitalise the country after 20 years of economic stagnation, most have judged it a dismal failure. But to dismiss Abenomics out of hand would be to misread Abe’s true objectives. Admittedly, first glance shows the policy’s “three arrows” have all fallen far short of their targets. The idea was that by pursuing radical monetary, fiscal and structural reform all at once, Abenomics would succeed where previous... https://www.scmp.com/week-asia/article/2018059/hidden-agenda-behind-japans-abenomics?utm_source=rss_feed https://www.scmp.com/week-asia/article/2018059/hidden-agenda-behind-japans-abenomics?utm_source=rss_feed Mon, 12 Sep 2016 01:00:52 +0000 When Yuki Kai dropped her baby son off at nursery on her way to work he was his usual bright, exuberant self. Just hours later the 14-month-old was dead. Kai remains tortured by the questions surrounding her toddler Kento’s final hours and her decision to leave him at an unofficial facility. “Kento was found dead when a staff member went into the room to wake him from a nap. He was in a room separate from where the other infants were sleeping because he had cried,” she said. I couldn’t get a... https://www.scmp.com/news/asia/east-asia/article/2009333/death-day-care-japanese-parents-take-aim-shinzo-abe-they?utm_source=rss_feed https://www.scmp.com/news/asia/east-asia/article/2009333/death-day-care-japanese-parents-take-aim-shinzo-abe-they?utm_source=rss_feed Fri, 26 Aug 2016 05:03:28 +0000 Japanese Prime Minister Shinzo Abe on Tuesday told his economy minister to compile an economic stimulus package by the end of this month to revive a flagging economy in the face of sluggish private consumption and investment. The order came as Abe met former US Federal Reserve Chairman Ben Bernanke to exchange views on the premier’s economic policy as he tries to revive his economic agenda after a big election victory in upper house elections on Sunday. Shinzo Abe downplays poll win that could... https://www.scmp.com/news/asia/east-asia/article/1989000/abe-orders-stimulus-package-end-july-he-meets-former-us-fed?utm_source=rss_feed https://www.scmp.com/news/asia/east-asia/article/1989000/abe-orders-stimulus-package-end-july-he-meets-former-us-fed?utm_source=rss_feed Tue, 12 Jul 2016 10:45:50 +0000 After dithering for months, Japan’s Prime Minister Shinzo Abe decided to dance with the devil and postpone the rise in the consumption tax rate until after he is supposed to leave office. At one level, we can all sympathise; it is not easy being caught between the devil and the deep blue sea. But Abe’s indecision tells a tale of poor leadership and wretched economic and political prospects for Japan. Abe’s dilemma was: if he increased the tax, as promised under law, he would risk tipping the... https://www.scmp.com/comment/insight-opinion/article/1975391/abes-tax-hike-delay-sign-japans-deep-political-and-economic?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1975391/abes-tax-hike-delay-sign-japans-deep-political-and-economic?utm_source=rss_feed Wed, 15 Jun 2016 04:03:11 +0000 For some time now, financial markets have been determining the conduct of monetary policy. Investor sentiment has become the tail that is wagging the central bank dog. For the US Federal Reserve, the strong influence of markets on monetary policy, although concerning, has proved beneficial. Bond markets have been acting as an “important automatic stabiliser” for the economy, Fed chairwoman Janet Yellen admitted in a dovish speech on March 30, with “changes in market expectations about the likely... https://www.scmp.com/business/article/1934105/surging-yen-reveals-limits-central-bank-policy-action?utm_source=rss_feed https://www.scmp.com/business/article/1934105/surging-yen-reveals-limits-central-bank-policy-action?utm_source=rss_feed Thu, 07 Apr 2016 02:30:30 +0000 In a bold attempt to re-inflate the Japanese economy, the Bank of Japan has pushed interest rates on deposits into negative territory. Though this policy is not new – it is already being pursued by the European Central Bank and others – it is uncharted ground for the BOJ. And, unfortunately, markets have not responded as expected. READ MORE: Japan’s big gamble on negative interest rates In theory, negative rates should spur increased lending to companies, which would then spend more, including... https://www.scmp.com/comment/insight-opinion/article/1918567/markets-limp-response-negative-rates-underscores-japans?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1918567/markets-limp-response-negative-rates-underscores-japans?utm_source=rss_feed Mon, 29 Feb 2016 08:30:59 +0000 Foreign investors have had just about enough of Abenomics. After pumping record amounts of cash into Japanese shares last year, they have hardly added holdings this year. Inflows were down 94 per cent to 898 billion yen (HK$57.9 billion) as of December 19, on pace for the smallest annual amount since the 2008 global financial crisis. April last year alone registered almost three times as much foreign investment in the stock market as all of this year. These figures provide the clearest look at... https://www.scmp.com/business/article/1671556/foreign-investors-no-longer-under-abenomics-spell?utm_source=rss_feed https://www.scmp.com/business/article/1671556/foreign-investors-no-longer-under-abenomics-spell?utm_source=rss_feed Tue, 30 Dec 2014 23:00:30 +0000 Japan's Liberal Democratic Party scored a decisive victory in the December 14 parliamentary election, with voters demonstrating their approval of Prime Minister Shinzo Abe's macroeconomic policy agenda. The election's message was clear: most Japanese abhor the prospect of a return to the grim economic trajectory that prevailed before "Abenomics". When the first "arrow" - a fiscal stimulus programme - was launched nearly two years ago, asset markets' immediate response was positive. The second... https://www.scmp.com/comment/insight-opinion/article/1670688/third-arrow-abenomics-wont-hit-target-without-sacrifices-all?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1670688/third-arrow-abenomics-wont-hit-target-without-sacrifices-all?utm_source=rss_feed Tue, 30 Dec 2014 05:45:45 +0000 Japan's cabinet approved 3.5 trillion yen (HK$225 billion) in fresh stimulus for the ailing economy, pledging to get growth back on track and restore the country's precarious public finances. Prime Minister Shinzo Abe is wrapping up his second year in office hard-pressed to salvage a recovery that fizzled into recession after a sales-tax increase in April. The stimulus plan endorsed yesterday includes 600 billion yen earmarked for stagnant regional economies. It also lays out Abe's vision for... https://www.scmp.com/business/economy/article/1669501/japan-unleashes-massive-stimulus-plan-growth?utm_source=rss_feed https://www.scmp.com/business/economy/article/1669501/japan-unleashes-massive-stimulus-plan-growth?utm_source=rss_feed Sat, 27 Dec 2014 21:22:16 +0000 Japanese investors are buying Asian assets like never before as Prime Minister Shinzo Abe's policies make the yen a lucrative means to fund bets on regional growth. A net 1.82 trillion yen (HK$120 billion) flowed into stocks and bonds in the rest of Asia in the first nine months of 2014, 76 per cent more than the previous record in 2007, data from Japan's Ministry of Finance showed. Borrowing in yen to invest in the 10 currencies that make up the Bloomberg-JPMorgan Asia Dollar Index returned an... https://www.scmp.com/business/money/markets-investing/article/1651225/carry-trade-sees-japanese-inflows-asia-hit-record?utm_source=rss_feed https://www.scmp.com/business/money/markets-investing/article/1651225/carry-trade-sees-japanese-inflows-asia-hit-record?utm_source=rss_feed Fri, 28 Nov 2014 20:45:45 +0000 Japan released a string of lacklustre economic data yesterday with inflation hitting its lowest level for more than a year, dealing another blow to attempts to conquer years of falling prices and tepid growth. The figures come after Prime Minister Shinzo Abe called a snap election and delayed a sales tax rise set for next year after a previous levy increase hammered spending and pushed the world's third-biggest economy into recession. Japanese consumer inflation came in at 2.9 per cent in... https://www.scmp.com/business/economy/article/1651269/japans-lacklustre-data-deals-blow-abe-growth-push?utm_source=rss_feed https://www.scmp.com/business/economy/article/1651269/japans-lacklustre-data-deals-blow-abe-growth-push?utm_source=rss_feed Fri, 28 Nov 2014 20:14:32 +0000 Japan's Supreme Court this week made a ruling which goes some way to explain the country's dire plight as an advanced country rapidly losing its way. It ruled that last year's upper house election, in which rural votes had up to 4.77 times more weight than urban ones, was held in "a state of unconstitutionality". But, bizarrely, the court did not rule the election unconstitutional - which means the old vested rural interests will hold sway when Japan goes to the polls next month. Shinzo Abe... https://www.scmp.com/comment/insight-opinion/article/1650711/can-electoral-win-abe-stop-abenomics-floundering?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1650711/can-electoral-win-abe-stop-abenomics-floundering?utm_source=rss_feed Fri, 28 Nov 2014 04:45:15 +0000 Japanese voters, puzzled as to why Prime Minister Shinzo Abe is calling an election now and unimpressed by opposition alternatives, may shun a December 14 election in record numbers. That could help Abe's ruling coalition win the poll for parliament's lower house, but also erode any claim of a new, strong mandate for his economic revival plan. A survey by the mass circulation Yomiuri daily published on Sunday showed 65 per cent of voters were interested in the election, down 15 points from the... https://www.scmp.com/news/asia/article/1647899/puzzled-voters-will-shun-japanese-election-experts?utm_source=rss_feed https://www.scmp.com/news/asia/article/1647899/puzzled-voters-will-shun-japanese-election-experts?utm_source=rss_feed Mon, 24 Nov 2014 14:30:15 +0000 Japan's fiscal discipline is worsening. In the coming years, the consequences will be felt in Japan, the region and worldwide. In the past quarter, the economy fell into recession. In the West, it was characterised as "unexpected", but the realities are precisely the reverse. With its third "lost decade", Japan has entered an era of huge monetary expansion that it not well supported by the fundamentals of its economy. Any premature exit from more fiscal stimulus and monetary easing will... https://www.scmp.com/comment/insight-opinion/article/1644407/beginning-japans-third-lost-decade?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1644407/beginning-japans-third-lost-decade?utm_source=rss_feed Thu, 20 Nov 2014 04:30:00 +0000 Shinzo Abe, Japan's prime minister, must be fearing that history is repeating itself. In 1997, Ryutaro Hashimoto, the then prime minister, raised the country's consumption tax in an effort to shore up public finances and reassure bond markets. This triggered a sharp fall in retail sales and helped tip the economy into recession, leading to Hashimoto's resignation. While economic conditions were much less favourable then - the Asian financial crisis was erupting and Japanese banks were crippled... https://www.scmp.com/business/economy/article/1644271/japans-abenomics-may-unravel-under-recession?utm_source=rss_feed https://www.scmp.com/business/economy/article/1644271/japans-abenomics-may-unravel-under-recession?utm_source=rss_feed Wed, 19 Nov 2014 23:45:30 +0000 "I am aware that critics say 'Abenomics' is a failure and not working but I have not heard one concrete idea what to do instead … are our economic policies mistaken or correct? Is there another option?" Japanese Prime Minister Shinzo Abe, SCMP, November 19 Let's look at failure. Since the early 1990s, the Japanese government has tried to stimulate economic growth with heavy doses of easy money and fiscal deficits. It is what they call the Keynesian model although I am not sure that John Maynard... https://www.scmp.com/business/economy/article/1643975/its-time-japan-dump-failed-keynesian-policies?utm_source=rss_feed https://www.scmp.com/business/economy/article/1643975/its-time-japan-dump-failed-keynesian-policies?utm_source=rss_feed Wed, 19 Nov 2014 22:00:45 +0000 In his efforts to jolt the world's third-biggest economy out of the doldrums, Japanese Prime Minister Shinzo Abe has run into troubled waters, whipped up by a sales-tax rise that sharply reversed growth when consumers stopped spending, and scandals over political donations that forced the resignations of two women cabinet ministers. Now the political headwinds have blown his government well off course, with a second consecutive quarter of contraction, an accepted indication that an economy has... https://www.scmp.com/comment/insight-opinion/article/1643235/japans-economy-falters-its-vital-shinzo-abe-fire-his-third?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/1643235/japans-economy-falters-its-vital-shinzo-abe-fire-his-third?utm_source=rss_feed Tue, 18 Nov 2014 21:00:15 +0000 A sharp slowdown in Asia and stagnation in Europe are putting the global economy at risk of a prolonged slump, economists say, marked in places by sky-high unemployment, sluggish wage growth and some of the worst economic conditions in decades. On Monday, Japan said it had entered its fourth recession in six years - this one despite aggressive efforts by Prime Minister Shinzo Abe to boost growth. Meanwhile, British Prime Minister David Cameron warned that the world economy could be headed... https://www.scmp.com/business/economy/article/1643195/global-economy-risk-asian-slowdown-and-european-stagnation?utm_source=rss_feed https://www.scmp.com/business/economy/article/1643195/global-economy-risk-asian-slowdown-and-european-stagnation?utm_source=rss_feed Tue, 18 Nov 2014 20:30:45 +0000