Tag Archives: Prime Minister Shinzo Abe

Articles of Interest

Taro Aso, Japan’s Deputy Prime Minister, Says Tokyo Could Learn From Nazis’ Tactics

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By The Huffington Post News Editors

Japan’s gaffe-prone deputy prime minister has said Tokyo could learn from Nazi Germany when it comes to constitutional reform, prompting a rebuke from a Jewish human rights group.

In a statement on its website late Tuesday, the US-based Simon Wiesenthal Center called on Taro Aso to clarify his comments that Tokyo, which is mulling a change to its pacifist constitution, should look to the way the Nazis quietly adopted reforms.

“First, mass media started to make noises (about Japan’s proposed reforms), and then China and South Korea followed suit,” Aso was quoted by Japanese media as saying in a speech Monday to a conservative think tank.

“The German Weimar constitution changed, without being noticed, to the Nazi German constitution. Why don’t we learn from their tactics?”

In response, the Jewish rights group said: “The only lessons on governance that the world should draw from the Nazi Third Reich is how those in positions of power should not behave”.

Chief Cabinet Secretary Yoshihide Suga, the Japanese government’s top spokesman, on Wednesday declined to answer media questions about the comments, saying “deputy prime minister Aso should answer that question”.

Prime Minister Shinzo Abe’s ruling Liberal Democratic Party has said it wants to revise the US-imposed pacifist constitution to define Japan’s defence forces as a full-fledged military force, amid territorial tensions with neighbours China and South Korea.

That has stirred strong emotions in Beijing and Seoul which have long maintained that Japan has never come to terms with its militaristic past.

Aso, who is also Japan’s finance minister, is known for his sometimes uncomfortable remarks, including saying earlier this year that elderly people should “hurry up and die” to avoid taxing the country’s medical system.

Copyright (2013) AFP. All rights reserved.

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Source: FULL ARTICLE at Huffington Post

Articles of Interest

Japan PM's Party Wins Control of Parliament

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Japanese broadcasters projected that Prime Minister Shinzo Abe’s ruling coalition won a majority of seats in the upper house of parliament in elections today, giving it control of both chambers for the first time in six years. The win is seen as an endorsement of Abe’s economic program, which has… …read more

Source: FULL ARTICLE at Newser – Home

News, Politics, Government

Japan mulls nationalising unclaimed islands: report

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Japan may nationalise any unclaimed remote islands in its waters in a bid to bolster its territorial claims, a newspaper said Monday amid a dispute with China over one set.

Prime Minister Shinzo Abe’s government is to establish a task force to research owners and names of some 400 remote islands, the Yomiuri Shimbun said.

If their ownership is unclear, the government will give official names to the islands and nationalise them, the mass-circulation daily reported.

“(Japan) plans to end the research next year and quickly take action, including nationalisation, to remote islands with no ownership,” the daily said.

The 400 islands are scattered across waters surrounding the Japanese archipelago.

The task force will comprise officials from the finance and justice ministries as well as the coastguard.

The move is part of Japan’s efforts to preserve maritime resources as the country faces ongoing territorial disputes with its neighbours, the newspaper added.

In 2012, ahead of the planned project, Japan announced plans to give names to some 40 other islands, including some near those at the centre of a dispute with China, in an effort to verify the extent of the nation’s exclusive economic zone.

Tensions have steadily risen between China and Japan, which accuses its powerful neighbour of sending an increasing number of ships to exert its claim over sparsely populated islands managed by Tokyo in the East China Sea.

The territorial row over the islands, known as Senkaku in Japanese and Diaoyu in Chinese, was reignited last September when Tokyo nationalised three islands in the chain in what it said was a mere administrative change of ownership.

Beijing has also disputed Tokyo’s claim to Okinotorishima, which lies 1,700 kilometres (1,050 miles) south of Tokyo, saying the wave-swept atoll cannot be regarded as an island under the UN Convention on the Law of the Sea.

…read more

Source: FULL ARTICLE at Fox World News

News, Politics, Government

Japan mulls talks with NKorea, surprising allies

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Japan‘s government is looking into re-opening official talks with North Korea to resolve questions over the abductions of Japanese citizens decades ago, raising concerns among allies who fear Tokyo‘s focus on that issue might weaken efforts to reign in Pyongyang’s nuclear weapons program.

Chief Cabinet spokesman Yoshihide Suga said Wednesday that high-level talks with the North are possible if they would lead to a breakthrough on the abductions. Prime Minister Shinzo Abe indicated earlier this week he is open to holding a summit with North Korean leader Kim Jong Un if such a breakthrough could be made.

Abe dispatched a senior adviser to Pyongyang last week, catching Seoul and Washington off guard. Both said they were not given prior notice.

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Source: FULL ARTICLE at Fox World News

News, Politics, Government

Sovereign day in Japan, another nationalist move

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Japan has officially marked the day it regained sovereignty 61 years ago following its World War II defeat, as Prime Minister Shinzo Abe‘s government steps up its nationalist campaign.

Abe is shifting to a more conservative agenda from economic policy. Sunday’s event is seen as a step to drum up support for revising Japan‘s U.S.-inspired pacifist constitution.

During Sunday‘s ceremony, Abe pledged to make Japan a stronger country with national pride.

Visits by several ministers and nearly 170 lawmakers to Tokyo‘s war shrine this month have enraged China and South Korea. Abe’s remarks perceived as whitewashing Japan‘s wartime aggression further infuriated those countries.

Abes’ conservative party also pushes for recognizing Japan‘s defense troops as national military and for revising school texts to be less apologetic to Japan‘s wartime atrocities.

Source: FULL ARTICLE at Fox World News

Business, Finance, Occupation & Industry

Is America Cheap Enough for Your Portfolio?

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By Dan Carroll, The Motley Fool

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U.S. stocks have exploded out of the gate in 2013. The Dow Jones Industrial Average has repeatedly hit new all-time highs while surging nearly 8.6% since the start of the year. Yet despite those impressive gains, the Dow’s maintained a respectable average P/E valuation of just 14.9, a number that’s far from expensive.

The best investors know that buying good stocks on the cheap is a recipe for success, however. As U.S. markets have surged, others around the world have experienced mixed results. So just which international markets are too cheap to ignore right now — and which are too expensive for your investment?

Cheap China, expensive America
The United States’ national P/E average of stocks ranks quite a bit higher than the Dow’s — it’s currently at 17.7, still a respectable valuation but more in line with the impressive gains we’ve seen since the start of 2013.

Surprisingly, the U.S. ranks as more expensive than the big winner in 2013 that has gobbled up attention everywhere — Japan. Japanese markets boast a national average P/E of 16.9, even as the Nikkei index has significantly outperformed the Dow to start the year. Fueled by the weakening yen and new Prime Minister Shinzo Abe‘s inflationary tactics, the Nikkei has sprinted to gains of more than 20% year to date, and Japanese stocks remain an attractive buy despite the surge. With the country’s central bank unveiling an unprecedented stimulus action this past week, Japan‘s set to unload a massive amount of yen into its stagnant economy. It’s a risky move, but Japanese financial stocks in particular stand to reap rewards on the back of easy money.

Not every Asian nation’s doing quite as well as Japan, however. Disgruntled neighbor China, which has singled out Japan‘s bond-buying program as the precursor to a currency war, ranks as much cheaper. China sports an average P/E of only 7.9: Chinese stocks have struggled to stay above water to start the year, and the country’s slowdown has worried economists about the second-largest economy’s growth. Hong Kong’s Hang Seng Index has fallen by 6.8% since the start of 2013, although the index sports a slightly higher P/E of 10.9.

While China‘s economy is still growing faster than nearly every other advanced nation, it needs to grow at a considerably quicker rate to support its developing middle class. Unless China identifies a plan that will pick up growth soon, don’t be deceived by that cheap valuation: This country’s still experiencing the ups and downs of a developing society, and Japan‘s massive stimulus move won’t help Chinese exporters any.

China‘s fellow BRIC member, Russia, comes in as even cheaper, with an average P/E of just 6. That’s a cheaper valuation than any member of the Dow currently; the closest blue-chip stock to Russia is Chevron , which sports a P/E of 8.9. Coincidentally, one of Chevron’s biggest global rivals has become one of Russia‘s brightest companies: Russian state-owned …read more

Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Japan, US reach deal on Okinawa land return

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Japan and the U.S. said Friday they have agreed on plans for returning to Japan land near Kadena Air Base on the southern island of Okinawa that is now used by U.S. troops, in an effort to balance local concerns with support for the countries’ military alliance.

A statement issued by both sides characterized the plan as a realignment and consolidation of U.S. forces in Okinawa.

“Recognizing the strong desires of Okinawa residents, this consolidation plan is to be implemented as soon as possible while ensuring operational capability, including training capability, throughout the process,” it said.

Okinawa was invaded by U.S. forces in World War II and has had an American military presence ever since. Tensions over land use, crimes committed by military personnel and disruptions by military flights on the heavily populated, semi-tropical island have been building over the years.

Prime Minister Shinzo Abe and U.S. Ambassador to Japan John Roos announced the agreement Friday.

“This is a very important event for reducing the impact of our bases in Okinawa, but at the same time, maintaining the long- term sustainability of our bases and our ability to achieve peace and security in the region and the defense of Japan,” Roos said.

The plans call for eventually returning more than 570 hectares (1,400 acres) of land near Kadena. The various facilities and land are being returned to Japan as replacement locations become available and troops are transferred out of Japan.

It also includes separate timetables and arrangements for relocating the U.S. Marine Corps’ Futenma Air Station in the Okinawan city of Ginowan beginning in fiscal 2022. The original plan for relocating Futenma to another location, Nago, by 2014 was put off due to local opposition.

An earlier agreement called for setting detailed plans by late 2012 for returning facilities and land to Okinawa. But progress was slowed by funding cuts that delayed relocating troops and facilities to Guam and families of U.S. service members to South Korea.

…read more

Source: FULL ARTICLE at Fox US News

News, Politics, Government

Japan central bank revamps policy to boost economy

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Japan is making a sweeping shift in its monetary policy, aiming to spur inflation and get the world’s third-largest economy out of a long, debilitating slump.

Bowing to demands from Prime Minister Shinzo Abe for more aggressive monetary easing, the Bank of Japan announced Thursday a policy overhaul intended to double the money supply and achieve a 2 percent inflation target at the “earliest possible time, with a time horizon of about two years.”

BOJ governor Haruhiko Kuroda described the scale of monetary stimulus as “large beyond reason,” but said the inflation target would remain out of reach if the central bank stuck to incremental steps.

“We’ll adjust without hesitation if need be, while monitoring economic and price conditions,” he said.

The BOJ is joining the U.S. Federal Reserve and other major central banks in soaking the economy in money in hopes of getting corporations and consumers to begin spending more in a virtuous cycle that would put growth back on track after two decades of malaise.

The central bank said it intended to “drastically change the expectations of markets and economic entities.”

Financial markets, which had feared Kuroda might not live up to expectation for bold steps, reacted with relief. The Japanese yen, which was trading at about 92.8 yen per U.S. dollar, dropped to about 95.5 yen per dollar after the announcement. The benchmark Nikkei 225 stock index rebounded from negative territory to close 2.2 percent higher.

“By committing today to meet a 2 percent inflation target in two years, Gov. Kuroda can justifiably claim to have set the Bank of Japan on a new path,” said Mark Williams of Capital Economics.

“But while markets have welcomed the announcement, the credibility of this pledge is soon likely to be called into question,” he said in a commentary.

Kuroda has pledged to do what he must to meet the inflation target within two years. Thursday’s decision after a two-day policy meeting makes that central bank policy. Signaling a consensus behind Kuroda, most items agreed upon received unanimous support from the nine-member board.

The policy shift is a coup for Abe, whose Liberal Democratic Party needs to make headway in reviving the economy before an upper house parliamentary election in …read more

Source: FULL ARTICLE at Fox World News

News, Politics, Government

Japan's 50 Richest

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By Tatiana Serafin, Contributor Japan’s new government, led by Prime Minister Shinzo Abe, has ushered in an era of monetary easing in Japan since December, weakening the yen and making exports cheaper and Japanese stocks more attractive. From his party’s election in December to March, the yen is down 10.9% against the dollar. But sales are up and stock prices are skyrocketing at many of Japan’s leading companies. In fact the Nikkei is up in both yen and dollar terms (22.9% and 8.5% respectively), returning to levels not seen since 2008. That means impressive increases in the fortunes of Japan’s 50 wealthiest. …read more
Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

Riding The Japanese Bull Without The Yen Drag

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By Paul Baiocchi, Contributor

Japan has been perhaps the most popular equity market topic in the past six months, ever since current Prime Minister Shinzo Abe came back with a vengeance, bringing with him promises of unprecedented monetary and fiscal stimulus to get the Japanese market back on its feet. …read more
Source: FULL ARTICLE at Forbes Latest

Business, Finance, Occupation & Industry

A Quiet End to Japan's Hottest Quarter in Years

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By Dan Carroll, The Motley Fool

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It’s been a blistering fourth quarter for Japan and its Nikkei stock index. The third leading economy’s index has been on a tear since the start of 2013, but have cracks begun to show in its rise? The Nikkei fell nearly 1% this week, and while some of the blame can be cast on Cyprus and the effects of the eurozone’s economic crisis, data shows that Japan‘s economy is still far from reaching its zenith.

Inflation’s no easy accomplishment
The Nikkei has soared over the past three months, and with the Japanese fiscal year coming to an end, it’s a good time to see just how well it’s done. The index experienced its best consecutive quarters over the past six months in four decades, riding the stimulus push from Prime Minister Shinzo Abe and his loose monetary policy. While many analysts project significant action from new Bank of Japan Governor Haruhiko Kuroda in the near future, recently released economic data shows that the Japanese economy still hasn’t caught up to the Nikkei’s lofty rise.

Japanese industrial output fell a tenth of a percent in February, while production declined 11% year over year. A weaker yen that should boost exports will help that figure, but consumer prices continue to fall in the Asian nation. Shinzo Abe‘s 2% inflation target won’t be easy to achieve.

That hasn’t hurt Japanese industrial stocks, however. Kubota has been on a tear this year as shares have risen more than 21% since the start of 2013. The company recently ended a joint initiative with Tata Metaliks Limited, a manufacturer with whom Kubota had constructed water pipes. The project ends as Kubota looks to become a stronger international force, using the weakening yen to challenge top agricultural manufacturing competitors such as Deere . Kubota has certainly won the battle for investors this year: Shares of Deere have fallen 2.3% year to date. However, the American company’s advantages of size and scale mean Kubota will need to work hard to close the gap with its competitor.

Japan‘s rise has helped a number of stocks out, and telecom stock NTT DoCoMo‘s modest 2.3% gains year to date won’t disappoint shareholders. It’s pushing its innovative side by recently launching a trial of its Tap-de-Concier service, a Google Now-like alternative for DoCoMo-serviced mobile devices that relies on user behavior to predict and offer suggestions such as information, games, media, and more. The company plans on a full rollout once the service’s trial ends in late September, something investors in this stock should keep an eye on.

The year hasn’t been so kind to other Japanese corporations. Semiconductor and electronics equipment maker Advantest has been hit hard so far, with shares losing more than 15% year to date. The stock‘s dropped despite the yen’s significant weakening, although it has climbed higher since bottoming out in February. Despite its overall gain in the last six months, Advantest’s slim margins and recent downswing …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

As Europe Struggles, Japan Threatens to Erupt

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By David Lee Smith, The Motley Fool

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My Foolish colleague Morgan Housel began an article a few days ago by noting that, “Poor Cyprus is in terrible shape.” The tiny Mediterranean nation virtually crept into that forlorn condition before most of us were aware of its difficulties. Of course, we’d known about the withering economies of Greece, Spain, and Italy. But now, unbeknownst to many, Japan, the world’s third-largest economy, may also be headed for what would be a far more resounding crash.

Some Fools may recall the Japanese “bubble economy,” which, before it came to an abrupt halt in 1991, was characterized by nosebleed values on real estate and stock prices. But, since that time, the country’s economic circumstances have continued to wweaken.

Not pretty numbers
Today, Japan‘s government debt to GDP is a whopping and globe-topping 245%. Beyond that, its total debt to GDP is about 500%, while the Japanese government spends at a rate of 2000% of its revenues. As a result, evenamid at prevailing rock-bottom rates, its interest costs on the government‘s portion of its debt runs to nearly 25% of the same government‘s revenue. Largely as a result, from July through September, the country’s economy was shrinking at an annualized rate of about 3.5%.

But that may be only a temporary phenomenon. Newly reinstated Prime Minister Shinzo Abe — who in the past had held the same post under the auspices of the Liberal Democratic Party and was returned by the electorate in December — apparently intends to undertake the quantitative easing (QE) approach that has become the apparent elixir for sluggish economies, whether in Europe or the U.S. In addition tied to an avowed object of turning Japan‘s deflationary economy into one that sports about a 2% growth rate. Further, “Abenomics” also includes “structural reforms,” including a round of deregulation.

Another prescription from Abe’s crew clearly involves letting the yen slide. Indeed, the currency has been lowered by 20% during just the past four months. That decline has essentially occurred under the cover of darkness, without generating any real attention. Its clear intent is to benefit the likes of the Japanese automobile manufacturers and other areas of industry. (This, despite Toyota‘s having recaptured the automotive world’s top spot from General Motors in 2012, while rival Honda recorded a 24% hike in U.S. sales for the year.)

Predicting problems
the face of the country’s dicey economics, however, and despite the ministrations of Abe and his minions, there are numerous Asia-watchers who have become convinced that an economic tumble for Japan is inevitable and possibly imminent. For instance, longtime Japan observer and Asian securities specialist James Gruber maintains that, a yield that expanded to 2% would result in the interest portion of the government‘s debt absorbing a clearly unsustainable 80% of its total revenues.

Also, the Dallas-based founder of Hayman Capital Management, Kyle Bass — one of the early seers of the …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Japan utility scraps plan for new nuke plant

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A Japanese utility has scrapped plans to build a nuclear plant near the site of a nuclear disaster two years ago.

Tohoku Electric Power Co. said Thursday that strong protests from local communities as well as radiation leaks at the proposed site of the new power station make the project unworkable. The company wanted to build a plant north of the Fukushima Dai-ichi plant that was destroyed by a tsunami that struck after a huge earthquake on March 11, 2011.

But the utility said land acquisition and environmental surveys could not be completed due to contamination.

Prime Minister Shinzo Abe supports resumption of reactors deemed safe. The company still plans to build a new reactor at an existing plant. Japan has 50 workable reactors and 12 in the pipeline.

…read more
Source: FULL ARTICLE at Fox World News

Business, Finance, Occupation & Industry

Shinzo Abe's Central Bank Coup Fuels the Nikkei's Rise

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By Dan Carroll, The Motley Fool

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Japanese stocks have been on a roll, and the Nikkei hasn’t let up its rise this week. The index rolled to gains of 1.3% over the past five days, fueled by Friday’s surge of more than 1.4% after the confirmation of new leadership at Japan‘s central bank that will only provide more ammunition to Prime Minister Shinzo Abe‘s inflationary goals. The Nikkei’s up more than 15.8% for the year and investors are happy, but will the good times roll on? Let’s get caught up on what you need to know.

Abe takes the BoJ
The Nikkei got its first bounce when Japan‘s Parliament confirmed the Bank of Japan‘s new governor, Haruhiko Kuroda. Observers expect Kuroda to go along with Shinzo Abe‘s dovish monetary plans that have so far sent the yen into a nosedive against the dollar this year. Kuroda and his new team will have their first policy meeting at Japan‘s central bank next month, and all eyes will be watching to see if any further easing comes as a result.

Eisuke Sakakibara, the former Japanese vice financial minister of international affairs in the late 1990s, said earlier this week that it would be “unlikely” that the yen-to-dollar exchange rate would soar past 100, but little has slowed down Abe’s currency devaluation so far in 2013.

Other nations haven’t been as happy about Japan‘s aggressive moves, however. A group of U.S. lawmakers spoke out against Japan‘s joining of free trade talks in the U.S. — proposed Trans Pacific Partnership (TPP). The TPP originally revolved around America and 10 other Pacific nations establishing a free trade deal, but Japan‘s willingness to join the discussion raised eyebrows over the country’s regulatory barriers that have in the past restricted American autos from the Japanese market.

Still, the talks haven’t hurt Japan‘s leading automaker, Toyota . The auto stock was named individual Japanese investors’ most popular stock in a survey by Nomura Holdings . Toyota’s shares have risen more than 7.8% on the NYSE, but the company’s Nikkei listing has shot up by a whopping 25% to outperform the index. Toyota already retook the global industry lead from rival GM in January, and while GM‘s surging ahead of Toyota in China with the ongoing Chinese-Japanese territorial dispute, the U.S.’s top car company faces plenty of challenges of its own. Further weakening of the yen will only help Toyota expand its worldwide lead as it advances internationally.

The falling yen will likely help out the financial sector as well, and Nomura’s been feeling the love recently. Japan‘s leading financial institution’s shares jumped almost 42% over the past three months, although it did take a blow earlier this week when Bank of America poached its Australian head of mergers and acquisitions. Mizuho Financial Group has also been having a great time recently, with shares up more than 39% over the past three months. The financial stock ranked as Japanese investors’ second most popular stock after Toyota in Nomura’s study, …read more
Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Dollar continues gains on positive economic data

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The dollar is continuing to gain against world currencies following the latest signs that the U.S. economy is strengthening.

The Labor Department reported that applications for unemployment benefits fell to a five-year low last week.

The euro declined to $1.2948 from $1.2961 late Wednesday as European Union leaders gathered for a summit beset by anti-austerity protesters.

The dollar rose to 96.34 Japanese yen from 96.10 yen. Japan‘s lower house of Parliament endorsed Prime Minister Shinzo Abe‘s choice to lead the nation’s central bank. Haruhiko Kuroda is expected to ease Japan‘s monetary policy.

The British pound was one of the few major currencies rising against the dollar. It increased to $1.4992 from $1.4914.

…read more
Source: FULL ARTICLE at Fox US News