LOCKED Japan Election Update: LDP Thrashed in Lower House Election

Summary

  • The Ruling LDP has lost its majority but will probably still hold onto government
  • This will require adding another coalition partner and result in lots of messy politics
  • While not the base case there is a small chance that no party is able to form a majority
  • Either way we face prolonged political uncertainty with nervous markets and the BoJ on hold

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