'Abenomics' era ends as premier calls it a day
Loading player...
Japan's Abe Shinzo said on Friday he was resigning because of poor health, ending a tenure as the country's longest-serving prime minister in which he sought to revive an economy stricken by deflation and push for a stronger military.
His abrupt departure triggers a leadership battle in his Liberal Democratic Party over the next few weeks. The winner will likely stick to Abe's reflationary “Abenomics” policies that had mixed results in resuscitating the world's third-largest economy.
Abe has ulcerative colitis, and two recent hospital visits within a week had raised questions about whether he could stay on until his term ends in September next year.
Despite the deepening concerns about his health, news of Abe's resignation sent tremors through Tokyo financial markets.
Japan's main stock market, which has more than doubled under him, fell about 2% before recovering, while the yen rose on concerns of a return to deflation.
“I cannot continue being prime minister if I do not have the confidence that I can carry out the job entrusted to me by the people,” Abe told a news conference.
He said he wanted to avoid a political vacuum as Japan copes with the pandemic. It was the second time Abe has resigned as prime minister because of poor health, the first more than a decade ago.
“I apologise from the bottom of my heart that despite all of the support from the Japanese people, I am leaving the post with one full year left in my term,” he said.
Apart from inheriting an economy in the throes of its worst downturn since World War 2, Abe's successor will be left to try and ensure that next year's Olympics — already delayed for a year — will go ahead.
Former defence minister Shigeru Ishiba and former foreign minister Fumio Kishida quickly expressed interest in the top job, media reported. Among others whose names have been floated is Abe's close aide, chief cabinet secretary Yoshihide Suga.
“The broad picture remains intact. In terms of economic and fiscal policy, the focus remains very much on reflation,” said Jesper Koll, senior adviser to asset manager WisdomTree Investments.
The resignation comes just days after Abe surpassed a record for longest consecutive tenure as premier set by his great-uncle Eisaku Sato half a century ago.
But for all his longevity, Abe failed to deliver on one of his most prized goals — altering Japan's postwar, ...
His abrupt departure triggers a leadership battle in his Liberal Democratic Party over the next few weeks. The winner will likely stick to Abe's reflationary “Abenomics” policies that had mixed results in resuscitating the world's third-largest economy.
Abe has ulcerative colitis, and two recent hospital visits within a week had raised questions about whether he could stay on until his term ends in September next year.
Despite the deepening concerns about his health, news of Abe's resignation sent tremors through Tokyo financial markets.
Japan's main stock market, which has more than doubled under him, fell about 2% before recovering, while the yen rose on concerns of a return to deflation.
“I cannot continue being prime minister if I do not have the confidence that I can carry out the job entrusted to me by the people,” Abe told a news conference.
He said he wanted to avoid a political vacuum as Japan copes with the pandemic. It was the second time Abe has resigned as prime minister because of poor health, the first more than a decade ago.
“I apologise from the bottom of my heart that despite all of the support from the Japanese people, I am leaving the post with one full year left in my term,” he said.
Apart from inheriting an economy in the throes of its worst downturn since World War 2, Abe's successor will be left to try and ensure that next year's Olympics — already delayed for a year — will go ahead.
Former defence minister Shigeru Ishiba and former foreign minister Fumio Kishida quickly expressed interest in the top job, media reported. Among others whose names have been floated is Abe's close aide, chief cabinet secretary Yoshihide Suga.
“The broad picture remains intact. In terms of economic and fiscal policy, the focus remains very much on reflation,” said Jesper Koll, senior adviser to asset manager WisdomTree Investments.
The resignation comes just days after Abe surpassed a record for longest consecutive tenure as premier set by his great-uncle Eisaku Sato half a century ago.
But for all his longevity, Abe failed to deliver on one of his most prized goals — altering Japan's postwar, ...