A versatile Fisco corporate research reporter's all-purpose column: Mabuchi’s Eye | Episode 9 What will happen to USD/JPY with the birth of the Suga administration? [Mariko Mabuchi]
Mariko Mabuchi Profile
Mariko Mabuchi. 7 years of investing experience. During the early days of Abenomics, she was entrusted with asset management at a company, then spent three years as a full-time trader before moving to Fisco as a corporate research reporter. She currently also handles marketing duties at Japan Cloud Capital. She graduated from Doshisha University Faculty of Law, and holds a Master’s degree in Public Policy from Kyoto University Graduate School of Public Policy. During university, she won Miss Doshisha.
Official Blog：https://ameblo.jp/mabuchi-mariko/
Twitter：https://twitter.com/marikomabuchi
※This article is a reprint/edit of FX攻略.com December 2020 issue. Please note that the market information written in the text may differ from current market conditions.
◆ How do overseas investors view the birth of the Suga administration continuing Abenomics?
As of now (September 21), overseas investors’ reaction to the Suga administration has been to observe quietly. Their insistence on continuing macro policies of Abenomics, such as fiscal stimulus and quantitative easing, is reassuring. Also, because Mr. Suga served as Chief Cabinet Secretary for a long time under the Abe administration, he has a certain level of recognition among overseas investors. Furthermore, his track record in pushing ahead with lowering mobile phone rates, introducing the hometown tax program, expanding acceptance of foreign workers, and promoting inbound tourism is known, so the market sentiment is that the birth of the Suga cabinet will be watched carefully for now.
With structural reforms and deregulation advancing under the Suga cabinet, there is an expectation that Japan's productivity will improve, which could boost Japanese equities. However, concerns about a strong yen are unlikely to be dispelled.
