On September 30th, the first trading day since Shigeru Ishiba was elected as the new president of the Liberal Democratic Party, the Tokyo Stock Exchange plummeted, dropping by more than 2,000 yen at one point. The decline is said to be due to a backlash from the previous week’s rise in stock prices and Ishihara’s positive stance on strengthening taxation on financial income, but many in the stock market are of the view that “the impact will be limited” (economist). ◆ Financial income tax “strengthening” stance The closing price was 1,910.01 yen lower than the previous weekend at 37,919.55 yen. Last week in the stock market, the view that Sanae Takaichi, who has advocated monetary easing and increased fiscal spending, was in the lead in the LDP presidential election spread, leading to a weakening of the yen and rising stock prices. Regarding the stock market decline on the 30th, which some called the “Ishiba shock,” Toru Suehiro of Daiwa Securities explained that “this has been reversed.” Nomura Research Institute’s Takahide Kiuchi also predicts that the sharp decline will be temporary. While Takaichi has called for the revival of the Abe administration’s economic policy, “Abenomics,” Ishihara has emphasized the need to correct inequality and has advocated policies that would be a headwind for stock prices. Regarding strengthening taxation on financial income, he said in early September, “I would like to see this realized.” However, after being criticized by other LDP presidential candidates, Ishihara also responded, “I would like to further accelerate small-scale investments such as the NISA (tax-free small investment system).” Regarding strengthening taxation on financial income, Prime Minister Kishida Fumio proposed this during the 2021 LDP presidential election, but was unable to implement it due to the sudden fall in stock prices. Can a growth strategy be put forward under the strong yen? Ishiba also made other remarks that could be perceived as negative for the stock market. Regarding corporate taxes and income taxes for the wealthy, he has hinted at tax increases, saying, “Those who are able to bear the burden would like to pay more.” Suehiro believes that the stock market and public opinion are not equal, and that “Ishihara, who is anti-Abenomics, is not badly evaluated.” It is expected that the trend of a strong yen will become established in the future, creating an environment in which real wages are more likely to rise. “What’s important is whether they can come up with a long-term growth strategy (in the meantime),” he points out. (Kiyomi Ishii, Izumi Hakusan) Tokyo Shimbun, October 1, 2024, 6:00 a.m.
>>1 How many people are subject to inheritance tax? 9.6% of the deceased were subject to inheritance tax. The number of deaths in 2022 (Reiwa 4) was 1,569,050, and 9.6% of them, or 150,858 people, were subject to inheritance tax. In other words, the number of deceased persons who were actually taxed was approximately 1 in 10.
>>1 The Crazy Newspaper desperately defends Ishiba Sageru lol Ishiba is totally in the wrong. By the way, an economist who was invited by Ishiba to give a lecture wrote an article saying, “Ishiba isn’t so bad,” but are the mass media all stepping up to protect Ishiba, who has been completely rejected by the financial markets? From somewhere across the ocean.
>>1 “The drop temporarily exceeded 2,000 yen. “ Normally I would write that it was over minus 2,000 yen. I thought it was written by an idiot who was trying to mislead people, but it turns out it was the Tokyo Shimbun lol.
The only 8 prefectures in Japan where the minimum wage exceeds 1050 yen per hour are Tokyo, Kanagawa, Chiba, Saitama, Osaka, Hyogo, Kyoto, and Aichi. Even in Tokyo, where the minimum wage is the highest, it is a low 1163 yen per hour. Compared to other developed countries, wages in Japan are far too low.
>>12 That’s it. Takaichi, who clearly stated his opposition to interest rate hikes, would have been able to continue the yen carry trade for a while, which would have led to a weaker yen and higher stock prices.
>>28 Yesterday, the Tokyo market crashed and the Shanghai index surged. Money fled to China because people are worried about the Ishiba administration.
>>29 Huh? In the opinion of the lefties, aren’t the true identity of the netouyo a group of poor NEETs? People who have enough money to invest large sums?
Japan is not growing \(^o^)/ The strong yen and deflation are for the common people Stocks have nothing to do with the common people There are idiots who say this with the same mouth.
>>34 Those kind of “common people” are retired old people who live off their savings and pensions. And among the old people, they’re the ones who have no interest in employing young people. If the yen appreciates during deflation, the value of one’s savings and pension will increase.
He said that gel-type politicians might work well when Japan was on an upward trend, but now that Japan’s GDP per capita is falling, they are not appropriate.
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