“Japanese shares hit seven-year highs on tax-relief hopes”

Here is a good summary of pretty much the only talking point in Asia today … Abe and his snap election, will he or won’t he?

From Reuters: Japanese shares hit seven-year highs on tax-relief hopes

• Japanese stocks scaled seven-year highs on Wednesday on growing expectations Prime Minister Shinzo Abe will postpone a planned sales tax hike to avoid damaging a fragile recovery, and call a snap election to bolster his political standing.

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Is Abe using the threat of an election to bring reluctant LDP members into line over the sales tax hike decision? Or is an early election a real possibility? I gotta say i find it difficult to believe Abe is is going to call a snap election to bolster his political standing.

I would have thought his party would lose ground in an election. But, as I said yesterday … I am no expert on Japan politics.