For the second time, Japan's Abe resigns due to health reasons

Tokyo

JAPANESE Prime Minister Shinzo Abe, the country's longest-serving premier, on Friday announced his resignation because of poor health, ending a stint at the helm of the world's third-largest economy in which he sought to revive growth and bolster its defences.

The 65-year-old has battled the disease ulcerative colitis for years and two recent hospital visits within a week had fanned questions on whether he could stay in the job until the end of his term as ruling party leader, and hence, premier, in September 2021.

"I cannot continue being prime minister if I do not have the confidence that I can carry out the job entrusted to me by the people," he told a news conference as he announced his decision to step down.

He said he wanted to avoid a political vacuum as the country copes with the coronavirus pandemic. "I apologise from the bottom of my heart that despite all of the support from the Japanese people, I am leaving the post with one full year left in my term," Mr Abe said, at times blinking back tears and his voice choking up.

It was the second time he has resigned as prime minister because of poor health.

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As news of the resignation spread, Japan's benchmark Nikkei average fell 2.12 per cent to 22,717.02, while the broader Topix shed one per cent to 1,599.70.

The selling wiped US$47 billion off Tokyo's US$5.7 trillion stock market value, which had more than doubled during Mr Abe's tenure.

The resignation will trigger a leadership race in the ruling Liberal Democratic Party - most likely in two or three weeks - and the winner must be formally elected in Parliament. The new party leader will hold the post for the rest of Mr Abe's term.

Former defence minister Shigeru Ishiba and former foreign minister Fumio Kishida both expressed interest in the top job, media reported. Among others whose names have been floated is Mr Abe's close aide, Chief Cabinet Secretary Yoshihide Suga.

Whoever wins the party poll is likely to keep Mr Abe's reflationary "Abenomics" policies as Japan struggles with the impact of the novel coronavirus but may have trouble emulating the political longevity that may be Mr Abe's biggest legacy.

"The broad picture remains intact. In terms of economic and fiscal policy, the focus remains very much on reflation," said Jesper Koll, senior adviser to asset manager WisdomTree Investments. "Longevity will be a struggle."

Earlier this week on Monday, Mr Abe surpassed a record for longest consecutive tenure as premier set by his great-uncle Eisaku Sato half a century ago. He won praise for reasserting Japan's presence on the global stage after years of revolving-door premiers. His resignation comes amid an uncertain geopolitical environment, including an intensifying confrontation between the United States and China and ahead of the US presidential election in November.

Singapore Prime Minister Lee Hsien Loong was among the many world leaders who reacted to the news of Mr Abe's resignation. Writing on his Facebook page, Mr Lee said he was sorry to learn of Mr Abe's resignation, adding that he had "worked well" with the Japanese leader for close to nine years.

"Under his leadership, our bilateral relations have deepened. We last met in person in November (2019), and more recently online in April, during the virtual Asean Plus Three Summit on Covid-19," said Mr Lee, adding: "Mr Abe also played a critical role in concluding the Comprehensive and Progressive Agreement for Trans-Pacific Partnership after the US left the original Trans-Pacific Partnership negotiations. I wish Abe-san a good recovery as he begins treatment for his condition."

The conservative Mr Abe returned as PM for a rare second term in December 2012, pledging to revive growth with his "Abenomics" mix of hyper-easy monetary policy, fiscal spending and reforms. He also pledged to beef up Japan's defences and aimed to revise the pacifist constitution. Mr Abe was also instrumental in Japan's successful bid to host the Tokyo 2020 Olympics, although they were delayed to next year because of the pandemic. Doubts still persist as to whether the Games will even go ahead then. "We must fulfil our responsibility as the host country of the Olympics," Mr Abe told the news conference. "Of course, I believe my successor will work to host the Olympics under the same belief."

Under fire for his handling of the coronavirus and scandals among party members, Mr Abe has recently seen his support fall to one of the lowest levels of his nearly eight years in office.

Japan has not suffered the explosive surge in virus cases seen elsewhere but Mr Abe drew fire for a clumsy early response and what critics saw as a lack of leadership as infections spread.

Japan's economy suffered its biggest slump on record in the second quarter as the pandemic emptied shopping malls and slashed demand for cars and other exports, bolstering the case for bolder action to avert a deeper recession.

Mr Abe resigned from his first stint as prime minister in 2007, citing ill-health after a year plagued by scandals in his Cabinet and a huge election loss for his ruling party. REUTERS