The Nikkei, Japan’s most important stock index, hit a 15-year high last Friday with closing figures above the 19,000 mark. The advance of the stock market, which is largely owed to multinationals operating overseas profiting from Abenomics’ policy of monetary easing, along with a stable increase in demand from the United States, is a welcome success for Prime Minister Shinzo Abe, whose hesitance to implement or clearly define the crucial “third arrow” of his economic policy has been criticized by politicians and economists alike.
One of the major reasons for Prime Minister Shinzo Abe’s reelection last December, apart from a weakened and divided opposition, was the stability of economic policy. With a weakened yen, a stock index that is surging, and long-awaited inflation instead of deflation, Abe has been able to claim several successes.
The April 16 tragedy of the MV Sewol in the territorial waters of South Korea has been exercising an impact on the local economy of Tottori Prefecture. This has occurred mainly due to the fact that the accident, in which more than three hundred people appear to have lost their lives, has deeply undermined the South Korean public’s faith in the safety of ferry boats.
Japan is completing steps to launch a derivatives market for Liquefied Natural Gas (LNG). While oil has long been traded in both spot and future markets, LNG remains very much the province of long-term fixed-price contracts. Japan is one of the biggest consumers, accounting for some 40% of world imports.
“Joining the Trans-Pacific Partnership negotiations is a far-sighted policy,” declared Prime Minister Shinzo Abe to his Cabinet and journalists on Friday, “Japan should play a leading role toward a year-end deal.” The prime minister may be exactly right, but the fact is that very few independent observers have any firm basis for making a judgment. Not only are the TPP talks highly complex, they are also secret and moving very quickly.
“We Want to Go Fishing!” was the slogan of a rally organized by the National Federation of Fisheries Cooperative Associations (JF Zengyoren) in Tokyo on May 29. As the yen falls, so the price of fuel is soaring and reaching a level that some fishermen say they can no longer endure.
The third consecutive Japanese prime minister has embraced the Trans-Pacific Partnership (TPP), and this time it is probably for real—at least as far as entering the negotiation process goes. Prime Minister Shinzo Abe used his much-awaited visit with US President Barack Obama to crow a little bit about how he was “restoring” the US-Japan Alliance after the three dark years of the Democratic Party of Japan.
In the midst of Japan’s energy woes, prompted by the Fukushima disaster and reinforced by the uncertainty arising from the tensions in East Asia, the arrival for the first time of a Liquefied Natural Gas (LNG) tanker through the Arctic Ocean and into the Pacific Ocean offers hope and the chance to diversify away from the sea lanes Tokyo currently relies upon for the bulk of its energy imports. This is possible thanks to the gradual melting of Arctic Ocean ice, technological developments, and Russia’s policy of energy export diversification.