Recent Disclosure of Ishiba Cabinet Assets
Prime Minister Achieves Double Returns on Stock Investments Over 5 Years
Negative Ratings Surpass Approval...Popularity Declines
Japanese Prime Minister Shigeru Ishiba, whose approval rating fell to a level threatening his administration's resignation early in his term, has reportedly earned more than double returns on stock investments over the past five years. Known as a so-called 'mil-deok' (military enthusiast), Prime Minister Ishiba primarily invested in the defense industry sector.
On the 26th (local time), the British daily Financial Times (FT) cited an analysis by Nomura Securities in Japan, reporting that "Prime Minister Ishiba's stock holdings yielded a 102% return since 2020," adding that "this outperforms the TOPIX (Tokyo Stock Exchange price index), which rose 60% over the same period."
Nomura Securities' analysis was based on the assets held by members of the Ishiba Cabinet and their spouses, which were disclosed last week. Ishiba's stock investment return was significantly higher compared to Finance Minister Katsunobu Kato's 83% and Economy, Trade and Industry Minister Yoji Muto's 53%. The FT explained, "Among Ishiba Cabinet members, five outperformed TOPIX in stock investment returns since 2020, while seven underperformed, and the analysis mainly focused on large-cap stocks."
Prime Minister Ishiba is understood to hold seven individual stocks, including Japan's largest defense companies Mitsubishi Heavy Industries and Kawasaki Heavy Industries. Having served as Defense Minister in 2007, Ishiba is famous as a 'mil-deok' with a deep interest in weapons and military history, even displaying plastic model fighter jets in his office.
There is also analysis suggesting that the increase in defense budget influenced Ishiba's stock windfall. In December 2022, the Japanese government revised three major security documents, including the National Security Strategy, at a Cabinet meeting, raising the defense-related budget allocation ratio from 1.24% of GDP to 2% by the 2027 fiscal year. The FT analyzed that "after the Japanese government decided to increase the defense budget, Prime Minister Ishiba's stock investment returns also surged."
However, the popularity of the Ishiba Cabinet has plummeted since his inauguration on the 1st of last month. According to a public opinion poll conducted by Mainichi Shimbun (October 23-24), the approval rating of the Ishiba Cabinet dropped 15 percentage points from the previous survey (October 3) to 31%. Additionally, negative evaluations stating "do not support" the Ishiba Cabinet rose 13 percentage points to 37%. With negative evaluations surpassing approval ratings in less than two months since its launch, the administration is considered to be facing a resignation crisis.
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