"Based on that, I will dissolve parliament on Nov. 16"
- Japanese Prime Minister Yoshiko Noda
Japan scheduled fresh elections on December 16, as country's Prime Minister is going to dissolve parliament on Friday. As Noda's party looks certain to lose, the leader of the main opposition Liberal Democratic Party, Shinzo Abe, is likely to become Japan's next leader. Earlier this week, both parties agreed on pushing ahead with the legislation authorizing the issuance of deficit bonds, which are worth 38 trillion yen ($475 billion) in order to cover the national budget.
"The likely result is a bloodbath for the DPJ," said Jeff Kingston, professor of Japanese politics at Temple University's Tokyo campus. "The economy is definitely the major issue facing Japan and because a lot of those economic and fiscal problems are intractable, that creates a temptation for leaders to dabble in other issues that aren't so difficult."
"Let's do this," Noda said yesterday. "Based on that, I will dissolve parliament on Nov. 16."
The Nikkei 225 Stock Average skyrocketed 2.20 per cent, or 194.44 points, to 9,024.16. The broader Topix Index soared 1.88 per cent, or 13.83 points, to 751.34.
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