Some analysts have predicted that more is in store for the index. Not according to Ronald Pullen, the chief investment officer of Mercury Asset Management Japan, the Tokyo arm of one of Europe's largest fund managers. Last week he spoke with Asiaweek Senior Correspondent Assif Shameen. The victory was factored into stock prices some time ago. The cynical view in Japan is that the country is run by bureaucrats, so it doesn't matter who's in power.
Political parties do differ on matters like the size of fiscal-stimulus packages.
But since the LDP has secured a larger mandate, that's academic. Its victory gives the bureaucrats the opportunity to press ahead with further deregulation measures, including new legislation that allows holding companies for the first time in 50 years. Change is underway in Japan, but it is a slow process. That's the main worry in analysts' minds. Some feel the recovery is far below expectation.