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Sales tax hike, snap poll put Abe in a bind

Tokyo markets on edge as his decisions could dictate direction

TOUGH CALL: Mr Abe is reportedly fearful of raising the consumption tax from 8 to 10 per cent next October as planned because of the way the first rise from 5 to 8 per cent in April depressed Q2 GDP. But delaying it will hurt his credibility.


SPECULATION and confusion continued to swirl in Tokyo's financial markets on Friday over whether Prime Minister Shinzo Abe would call a snap general election upon his return from the weekend G-20 summit in Australia, and also delay implementing a consumption tax hike.