Japanese PM Abe was re-elected as his party's leader yesterday. Which gives him at least another 3 years as PM ... perhaps.

It depends, says the Nikkei today,

  • "to a large extent on his government's ability to clear more daunting economic obstacles than before."
  • The going will be rough
  • For all Abe's talk about the successes of Abenomics, the effort has plateaued
  • The growth strategy component of Abenomics "needs regulatory reforms in labor and other areas and radical measures to address the low birthrate," a senior economic policymaker says

More here at the Nikkei report

-

An easier path may be another round of increased BOJ stimulus (until they run out of stuff to buy?) which should give the yen another kicking.