Japan: Elections has given a super-majority to constitution changing parties – BBH

Research Team at BBH, suggests that many observers are emphasizing that the weekend election in Japan has given a super-majority to those parties that want to change the constitution, relaxing the restraints on the military. 

Key Quotes

“We suspect it is not so easy, as the LDP's coalition party is not nearly as sympathetic.  Moreover, it is clear that Abenomics has still not won the hearts and minds of the Japanese people.  The first focus is not on changing the constitution, but on reviving the economy.  The poor machinery orders (-1.4% in May vs. Bloomberg median of +3.2%) illustrates the need to action.

We have often argued that Abenomics was a largely traditional LDP medicine of stimulative fiscal and monetary policy with a weaker yen.  Between as much as JPY20 trillion (~$200 bln) and BOJ efforts expected at the end of the month, it appears we have come in a full circle.”