It would be a big surprise if the ruling coalition didn't get a majority.

With core consumer prices set to rise steadily above zero and today's GDP report confirming that a steady recovery is at work, there is almost no obstacle left for the Bank of Japan in ending its super-loose monetary policy.

This shows the increase in spending is not due to a one-off factor. We are seeing consumers becoming more and more confident about the future economic trend.

The trend of Japan's economic recovery won't stop. The central bank seems to become increasingly confident that it can change policy around the middle of 2006.

Combined with the election outcome, which will have a long-term impact on the economy, we could see a virtuous circle of politics, the economy and asset classes.

On major economic policies, the campaign has made clear that both parties share the same basic concepts of reform and small government.