Japan investors discount political risk

TOKYO, Apr 17 (Reuters): From a rising Nikkei stock market to falling measures of volatility, there is little in Japan's financial markets to suggest that this may be a nation on the verge of a political upheaval.

Public support for Prime Minister Shinzo Abe, the architect of the Abenomics brand of reforms that has helped weaken the yen, raised economic growth levels and lifted corporate profits, is at record lows as his administration is embroiled in scandals involving suspected cronyism.

That has drastically reduced the odds of Abe being re-elected leader of the ruling Liberal Democratic Party (LDP) in September and becoming Japan's longest serving prime minister. A popular predecessor even predicted this week that Abe would probably resign in June.

But investors don't appear to be worried.

"As an investor, I have no plan to do any Abexit trade," said Yasuo Sakuma, chief investment officer at Libra Investments in Tokyo. He said most investors are now looking at economic and company prospects rather than politics to gain an advantage in the market.