Japan’s ruling coalition lost its majority in an election over the weekend, which leaves the world’s fourth-largest economy facing the prospect of minority government, or minor parties acting as linchpins in coalition.
Where we're at:
- Japan’s lower house has 465 seats
- 233 are required to form a majority
- Going into the election the ruling LDP combined with its coalition partner (which gave the two a majority in the upper house) held 288 seats in the lower house
- Current counting has LDP 191, K 24 ... so 215, well short of 233 required.
- Constitutional Democratic Party of Japan is the largest opposition party, they have increased their seats to 148 (91 prior)
- Two smaller opposition parties, Nippon Ishin no Kai (has 38 seats, from 43 prior) or the Democratic Party for the People (DPP) (has 28 seats, from 7 prior) looks likely to be the partner for LDP/Komeito to get over the 233 seat line
There are still some seats to be decided.
USD/JPY gapped higher (see earlier posts for a better picture of the moves up to now) update:
10 minute candles shown.