News Headline Summary

Japan's conservative Liberal Democratic Party (LDP) surged back to power in an election on Sunday

- The LDP has won 294 seats and its coalition partner New Komeito 31 in the 480-member House of Representatives.
- ex-Prime Minister Shinzo Abe set to return to power; Parliament is expected to vote Abe in as PM on December 26th.
- Abe prescribes radical monetary easing for economy.

Next Japan PM Abe says:
- To decide on sales tax hike after seeing April-June economic data in August.
- Wants to show strong determination to maintain Senkaku as Japanese territory.
- Must cooperate with BoJ on monetary policy and want to seek dialogue with BoJ.
- BoJ's quantitative easing will help correct JPY rise, lead to stock price rise.
- Have no intention of worsening relations with China, though need to stop it from challenging Japan's territorial rights on Senkaku.

Reaction details:

- USD/JPY is currently trading in its highest level since April 2011, trades 84.22 (+65 pips) last.
- EUR/JPY is currently trading in its highest level since March 21st, trades 110.98 (+102 pips) last.

Print 22:04, 16 Dec 2012 - Asian News - Source: Newswires