The top or most interesting stories from Japan for January 13.
– The Liberal Democratic Party (LDP) candidate for governor in southwestern Japanese prefecture has lost to Democratic Party of Japan candidate, Yoshinori Yamaguchi. Saga Prefecture is a farm heavy prefecture and the loss there has been seen as the LDP’s failure to listen to the needs of regional areas, whilst on a national level the Prime Minister Shinzo Abe (LDP) pushes economic reforms that could mean trouble for already suffering farmers (The Japan Times, Japan News)
– Falling oil prices are a double edge sword in Japan, whilst household costs will fall and companies will pass fuel savings to consumers, the lower price poses a slight challenge in reducing Japan’s heinous inflation rate. The Japan Times’ Kazuaki Nagata provides an analysis.
– At the same time the oil prices have led to investors around the globe moving away from stocks / equities to bonds, leading to a price drop in yields. The Bank of Japan is leading the push to buy Japanese government bonds (JGBs) which will flood the local economy with cash. It’s a lot to wrap one’s head around but it’s big news for Japan’s debt crisis. (Wall Street Journal)
– South Korean President, Park Gyeun-Hye has expressed a desire to open up a summit with Japanese Prime Minister Shinzo Abe and even North Korean leader, Kim Jong-Un. But Gyeun-Hye has said it’s essential that Japan take a strong initiative to apologise and reconcile for its colonial rule of Korea in the 20th century, this as the Abe government considers the wording of its statement on the 70th anniversary of World War II.
– More and more residencies in Japan are being left abandoned, with tax incentives encouraging the construction of new housing rather than developing old sections. The picture, from a broader perspective, is an interesting one: as Japan’s population shrinks, more houses fall empty.
