Shinzo Abe resigns from his post of Prime Minister today. The longest-serving Japan Premier said, “I cannot be prime minister if I cannot make the best decisions for the people. I have decided to step down from my post.”
The 65-year-old leader of the Democratic Liberal Party leaves behind a leadership vacuum. It will take 2-3 weeks for the party to choose the new leader. The next leader will assume the position of Prime Minister until September 2021.
Shinzo Abe Resigns at a crucial geopolitical time. The United States is in loggerhead with China over coronavirus, South China Sea, and trading practices. Japan, Australia, India, and the United States have constantly targeted China in the recent past for the misdeeds of the CCP. However, the biggest impact of Abe could be in the Japanese Economy.
Abe has worked for many years to put his Abenomics in front to propel the third-largest economy of the world. His election promises are also based on his policies. However, he leaves the office at a time when Japan’s economy is sluggish. The coronavirus pandemic has hit it hard.
The benchmark Nikkei average fell by 2.12% as soon as his resignation emerged. The Topix shed almost 1% after the news. Tokyo’s stock market that is valued at almost $5.7tn now, doubled during Abe’s tenure. After the news, almost $4.7bn was wiped out.
The new leader of the Democratic Liberal Party will most likely keep up with the Abenomics. Japan needs it most at the time of crisis. Many industry experts understand that Shinzo Abe is needed for Japan’s economy to recover. However, his sudden exit from the office has jolted the confidence of many.
Abe has suffered ulcerative colitis for many years. His two visits in two weeks raised many questions on his health. Local Media reports suggested his resignation today.