Japan’s tally of virus infections is shooting up faster than ever, and support for Prime Minister Shinzo Abe is sinking to new lows, according to Bloomberg.
Lead paragraphs
While Japan’s total death toll remains close to the number the US sees in a day, the public fears Japan may be sitting on a ticking time bomb. Abe’s approval slid to a record low of 35.4% in a poll published by JNN Monday.
More than 60% of respondents said Abe should declare a second state of emergency to bring infections under control -- something his ministers have rejected.
Key notes
- Abe has come under fire for failing to hold a press briefing since June, although his main spokesman said he was in good health. After years of consolidating power, Abe may be starting to let go:
- Speculation over an early election has all but ended, and it looks like he’s letting potential successors vie for attention before his term as party leader ends in Sept. 2021.
- Asked Tuesday if he should address the media, Abe deferred to others in his cabinet.
He no longer appears to be indispensable, the only one who can keep Japan safe,”
said Tobias Harris, an analyst at advisory firm Teneo.
“Instead, he has appeared indecisive, several steps behind events, and unable to communicate directly with the public.”
Market implications
None of this is particularly good news for the equity markets, but the yen could well be a major beneficiary as risk-off sentiment prevails on a global scale.
However, the reality of that Japan will be left in political limbo.
No one in Abe’s ruling Liberal Democratic Party has stood out as a likely successor, while opposition parties are mired in single-digit support rates.
Local leaders who have gained support for their virus management, such as Tokyo Governor Yuriko Koike, don’t have the political machine to win a national election,
the article reads.
After dwindling in late May, coronavirus cases have ballooned in the wake of what many saw as a hasty re-opening of the economy, as the government sought to save struggling businesses. The seven-day average of daily new infections is now more than 1,000, almost twice a previous peak seen in April.
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