Japan's cabinet reshuffle shows trade agreement commitment

Japan’s January 14 cabinet reshuffle – the third since Prime Minister Naoto Kan took office in June – could be good news for investors. As Nomura analysts point out: “We think the January 14 cabinet reshuffle will have a positive impact on Japanese equities as a whole, as it indicates to us the Japanese government is taking an active stance towards normalising Diet proceedings and promoting the Trans-Pacific Partnership (TPP).”

The equities call is a typical statement about how daily news drives the swings of any bourse. Normalised Diet proceedings is something we’d all love to see, but let’s face it, Kan is the fifth premier since 2006 and if there’s a norm it is regular cabinet shuffles. Indeed, Japanese press reported that the cabinet changes were greeted with indifference by the man on the street in Tokyo.