Japan Inc. should rejoice at the prospect of a new premier: It can only get better from here.
Yoshihide Suga, the top aide to Prime Minister Shinzo Abe, has been elected leader of the ruling Liberal Democratic Party in a landslide, paving his way to the country’s top post. Parliament’s vote Wednesday will make it official.
For industrial Japan, Suga’s victory comes as a nascent, post-COVID 19 recovery is afoot. Recent survey data pointed to an upturn for manufacturers. Certain sectors like machinery and transport equipment are doing far better than others. Industrial production in July rose from a month earlier. Meanwhile, machine tool orders have been flat instead of sharply down.