Japanese Prime Minister Quits

The Japanese prime minister Hatoyama has quit together with his powerful right-hand man ahead of the upper house elections in July.

Hatoyama, who took power 8 months ago in a flurry of fresh starts and change, has now left the country in the midst of a deficit that sits at a massive 200% of gross domestic product.

The yen took a dive on the news, as investors worried about the political uncertainty surrounding Japan.  However, it is expected that this uncertainty will be short lived as Hatoyama’s replacement is announced.  The favourite to take the lead is finance minister Kan, who is known for a tougher stance on fiscal policy.

With Kan at the helm, investors are likely to receive comfort in the hope that he will do more to cut public spending.

The euro zone’s problems just never seem far away these days, with the latest blow being unemployment figures.  The total amount of jobless people in the region now sits at over 15 million; in April it reached an all-time high.

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Explore posts in the same categories: Asian Market, Economy, Finance, Japan, News, News Articles, Topical

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