“MISTRUST AND ANGER”
Ishiba, 67, who only took power on Oct 1, vowed on Monday to implement reforms to overcome “people’s suspicion, mistrust and anger” after the party scandal.
Japanese businesses are more concerned about the potential for parliamentary paralysis holding up reforms aimed at jumpstarting the world’s fourth-largest economy.
On Monday, the yen hit a three-month low, partly on fears that the political uncertainty will lead the Bank of Japan to slow down on increasing interest rates.
The chairman of the Japan Business Federation on Sunday urged political parties to focus on policies to grow the economy and overcome current challenges.
“It is difficult to say that sufficient discussions have been made on a mountain of important issues, and it has to be said that issues have been postponed,” the head of the Japan Association of Corporate Executives said.
Syetarn Hansakul from Economist Intelligence said the LDP’s poor election showing and “reduced political clout” could dent “investors’ confidence in Japan’s political and economic outlook”.
“As long as our own lives don’t improve, I think everyone has given up on the idea that we can expect anything from politicians,” restaurant worker Masakazu Ikeuchi, 44, told AFP.
