In Japan, the Prime Minister changed from Yoshihide Suga to Fumio Kishida in October 2021. Since the change of Prime Minister, the fall of Japanese stocks and the Japanese yen has begun. Since the Kishida administration was inaugurated on October 4, the Nikkei Stock Average has fallen for eight consecutive business days until October 6 with the inauguration of the Kishida administration. This is the first time in about 12 years since July 2009. There are many stock traders and Forex traders who have lost a lot of money, and they are very unpopular Prime Ministers. Even after entering 2022, the Japanese yen and Japanese stocks have been sluggish. Despite the war in Ukraine, the Japanese yen is not being bought.
Japanese yen is sold even during the war
Until now, the Japanese yen has been a currency that is almost always bought in the event of an emergency. However, despite the full-scale war between Russia and Ukraine in 2022, the Japanese yen continues to be sold. It would be no exaggeration to say that Prime Minister Kishida is a poor god in such developments. As a matter of fact, although there is a temporary purchase of the Japanese yen in 2022, the Japanese yen is clearly sold on the whole. In October 2021, when the Kishida administration was inaugurated, the Japanese yen crashed. Furthermore, in March 2022, the Japanese yen continued to be sold at a terrifying speed. With this, it is natural that the Kishida administration will be disliked by traders.
Buy Australian dollars
Then, if the Japanese yen is not bought even though it is an emergency, what is being bought is the Australian dollar. Since Australia is a country geographically distant from Ukraine and Russia, there is a situation where people can buy it with confidence. Furthermore, crude oil prices continue to skyrocket as of 2022, which is also the reason why the resource-rich Australian dollar is being bought. Since Japan is a neighboring country with Russia, many people think that it is a risk.
Reason for unpopularity 1: Leftist government
The Liberal Democratic Party has clearly been closer to China since the Kan era of the previous administration, and the Kishida administration also finds members of the Chinese faction useful. As introduced in the article below, Japan has been invaded by China, and anti-Chinese sentiment is rising. It cannot be said that it is supported by the Japanese because it is advocating a policy that is the exact opposite of the current situation. The Japanese are also distrustful of the LDP itself. It will be difficult to be supported in such a situation.
Reason for unpopularity 2: LDP tax increase policy
Prime Minister Fumio Kishida’s “tax increase plan” is very unpopular with Japanese people. Obviously, the tax burden is increasing, so I’m not convinced. Prime Minister Fumio Kishida has expressed his intention to strengthen financial income taxation, which is very unpopular with traders. Prime Minister Kishida proposes a policy to raise the tax rate, which is a flat rate of 20% for financial income tax such as dividends on stocks and gains on transfer. To traders, Prime Minister Kishida will only look like a plague god.
Market disapproval rate is 95.7%
Prime Minister Kishida’s policy is “very bad reputation not only from Japanese but also from foreign investors.” The real image of “new capitalism” that Prime Minister Kishida advocates is just a policy that seems to keep a distance from the market principle, and it is not realistic. Unrealistic policies such as financial income taxation, share buyback restrictions, and quarterly earnings reviews have been criticized. According to an investor survey conducted by Nikkei CNBC in late January, 95.7% of the respondents answered “No” to the question “Do you support the Kishida administration?” It’s a number that clearly shows how untrustworthy it is.
The crash of the Nikkei Stock Average that occurred in October 2021 is said to be the Kishida shock. It would be nice if this could be done in a single shot, but in reality the same situation has occurred in March 2022. Moreover, the nightmare that the Japanese yen continues to be sold despite the wartime. Japan is said to be “the lost 30 years” in the Liberal Democratic Party’s politics, but the nightmare seems to continue.