Abe’s LDP and partner win majority in Japan upper house election

Japan’s governing Liberal Democratic Party and junior partner Komeito won a majority of the seats up for grabs in Sunday’s upper house election but the coalition and a conservative ally fell short of the two-thirds majority needed to move ahead with revising the constitution.

The victory gave a tailwind to Prime Minister Shinzo Abe’s plan to raise the consumption tax and allowing him to focus on trade talks with the U.S. as well as a widening dispute with South Korea.

As of 1:21 a.m. Monday, the ruling coalition had secured 69 seats of the 124 that were contested, according to a Nikkei estimate. That is enough to give the coalition a majority in the upper house. It holds 70 seats that were not up for grabs for a total of 139.

The opposition secured 39 seats, bringing its total to 82.

Upper house elections are held every three years, with about half of the chamber’s 245 seats up for grabs. Members serve six-year terms.

The LDP-Komeito coalition needed to win 53 seats to keep control of the upper house. The LDP could command a majority by itself if it wins 67 of the 124 seats.

An initial Nikkei estimate based on a Kyodo exit poll suggested that the ruling coalition would clinch 65 to 80 seats, well over a majority of those contested. Opposition parties are expected to come through with 44 to 59 seats.

Voting ended at 8 p.m., and a final count is expected early Monday.

Abe, who doubles as LDP president, had already led his coalition to victory in five national elections since returning as the party’s leader in 2012. Tonight he raises that tally to six, partially as a result of a splintered opposition.

Tobias Harris, Japan analyst at New York-based risk consultancy Teneo Intelligence, noted the low voter turnout and said, “People find a certain satisfaction in a stable and long-running government.”

Election officers sift through ballots at a Tokyo counting center after Japan voted for upper house members on July 21. (Photo by Akira Kodaka)

Abe is on course to become Japan’s longest-serving prime minister in November but will have to navigate a number of potential hazards.

In October, Japan’s consumption tax goes to 10% from 8%. The planned increase has unleashed a considerable public backlash and fears that it could pull Japan into an economic downturn.

“Everyone said it would be extremely hard to win a majority with the tax hike on the agenda,” Abe said after the count began coming in. “But I think we earned people’s understanding.”

The Abe administration will also face the task of moving forward in trade negotiation with the U.S. Both sides have agreed to reach an outcome soon after the election.

In regard to U.S. President Donald Trump’s protectionism, Abe has been mostly silent despite Japan’s total exports recording a seventh straight decline in June, hindered by the impact of the U.S.-China trade war.

Meanwhile, Tokyo’s relationship with Seoul continues to sour, with Abe ratcheting up pressure on South Korean President Moon Jae-in by restricting exports of key chipmaking materials to the country.

The prime minister on Sunday night said Tokyo’s restrictions on exports of high-tech materials to South Korea are not intended as retaliation against the country in a long-standing wartime labor row. “We have been trying to discuss with Seoul about trade control for about three years, but they have refused to comply,” Abe said during a TV interview. “I would like South Korea’s sincere cooperation in order to build a relationship of mutual trust between us.”

Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management, said, “Although Abe has various issues ahead of him, this election did prove the people’s confidence in the ruling coalition. The election outcome is no surprise to the financial markets but now the attention will likely be on how Abe handles the Japan-U.S. trade negotiations.”

Opposition parties sought to boost their electoral chances by joining forces in some districts but nevertheless took a drubbing. Opposition parties now face the task of regrouping so as to better win over voters and compete against the ruling coalition.

Despite the camp’s overall poor showing, the Constitutional Democratic Party is expected to double its upper house presence and strengthen its influence among opposition parties.

Meanwhile, the Democratic Party for the People, which split from the CDP, lost seats, making it difficult for the CDP to bridge the gap.

Voter turnout is expected to be around 48%. The last time the rate fell below 50% was in 1995, when 44.52% of the electorate showed up. Heavy rainfall in the western part of Japan might have dissuaded some people from venturing to their polling stations on Sunday.

Yukio Edano, leader of the Constitutional Democratic Party of Japan, attends a news conference at the party’s headquarters in Tokyo on July 21. (Photo by Wataru Ito)

It remains unclear whether the so-called pro-constitutional-revision forces, which include the ruling coalition and willing opposition parties, can retain two thirds of the chamber’s seats.

Abe has been racing toward amending Article 9 of Japan’s pacifist constitution so that it recognizes the role of the country’s Self-Defense Forces.

Any proposal to amend the constitution needs a two-thirds vote in the upper and lower houses and a simple public majority. The LDP-Komeito coalition has more than two thirds of the seats in the lower house.

In the election, the LDP and the other pro-revision parties will need to win 85 seats to have the 164 required for the upper house to pass a proposal to amend the constitution.

While campaigning, Abe repeatedly brought up his ambition to amend the constitution. “In this election,” he said in his speeches, “you will either choose a party that will discuss a constitutional revision or politicians who do not fulfill their responsibilities and refuse to even hold these discussions.”

On Sunday night, Abe followed up on this. “This election is not about taking two-thirds of the upper house but about stabilizing Japan’s politics. Constitutional revision is not up to the government but the Diet. I hope for active discussions on constitutional revision going forward.”

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