The Cabinet overhaul has revived failing public support for Prime Minister Shinzo Abe's economic policies and invigorated markets that have shown more confidence in him than his predecessors.

The cost to protect government debt against default slid to 34 basis points after last Wednesday's shuffle, the lowest since October 2008, CMA data show.

Abe presided over a 46 basis-point decline in bond risk, twice the drop overseen by his predecessor, Yoshihiko Noda, and the most in Bloomberg data going back to October 2004. The Topix index rallied 1.2 percent last week and the annualized 29 percent gain in shares in his 20-month term surpasses any other premier in at least two decades. The yen tumbled to a six-year low versus the dollar.