Sales tax hike, snap poll put Abe in a bind

Tokyo

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.

The uncertainty put equity and currency markets on edge as an announcement of an election and a postponment of the tax hike could send what are already seen as "oversold" Tokyo stock prices higher, and the yen lower; the absence of an announcement could give stock and currency markets a corrective jolt.