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TAKE A LOOK-Five key Asia political risk themes to watch
SINGAPORE, Oct 5 (Reuters) - Following are five key political risk themes for markets to watch in Asia in the coming week, and Reuters stories and analysis related to them:
TEETHING PROBLEMS FOR JAPAN'S CABINET
The cabinet of Japan's new prime minister, Yukio Hatoyama, has already run into teething problems as it gets down to work. Finance Minister Hirohisa Fujii has provoked swings in the yen with apparently contradictory comments. There is talk of a power struggle between Fujii and National Strategy Bureau head Naoto Kan. Coalition partner Shizuka Kamei, the new minister for bank regulation, has also rattled investors with his comments. Markets will be watching to see if these incidents represent minor teething problems for an inexperienced cabinet, or whether they herald longer-term confusion over the direction of policy. > ANALYSIS-Fujii gets harsh refresher in fx markets [ID:nT337529] > ANALYSIS-Japan loan moratorium fuss hits confidence[ID:nT182926] > Q+A-Split between Japan strategy bureau and finmin[ID:nSP439345] > FACTBOX-Policy challenges facing new govt [ID:nT278491]
CHINESE PREMIER VISITS NORTH KOREA
Chinese Prime Minister Wen Jiabao is visiting North Korea for "an official goodwill visit", and analysts say Beijing would not send such a high profile visitor unless it had won some assurance from Pyongyang that could ease tension over the nuclear standoff. Diplomatic sources in Beijing say there could be an announcement during the visit about the disarmament-for-aid talks. Signs of easing tension will be welcomed by investors, particularly in South Korea and Japan. > Q+A-Why did North Korea change its constitution? [ID:nSEO325226] > SCENARIOS-N.Korea at brink of disarmament talks [ID:nSEO140629] > ANALYSIS-US unmoved by N.Korea charm offensive [ID:nN24165996]
HEALTH OF THAILAND'S KING
Thailand's 81-year-old King Bhumibol Adulyadej has been hospitalised for fatigue and fever, but doctors say his health is improving. Bhumibol is widely revered in Thailand, but his son and presumed heir, Crown Prince Maha Vajiralongkorn, does not command the same popular support as his father. Many Thais and political risk analysts fear a focus on succession amid an already inflamed political climate could be destabilising. > ANALYSIS-Kng's health puts focus on succession [ID:nSP216019] > FACTBOX-Five risks to watch for Thailand [ID:nSP503251]
INDIA STATE ELECTIONS
Three state elections on Oct 13. will be the first test of the new Congress government. Markets will watch to see if the drought and the economic slowdown have damaged support for Congress in Maharashtra state, home to Mumbai. If support for the government appears to be declining, analysts say, this may make bold policy initiatives and reforms -- including on trade and climate change -- less likely. > FACTBOX-Five risks to watch in India [ID:nSP408877] > FACTBOX-Impact of India's previous drought [ID:nDEL355352] > SCENARIOS-How can India manage a bad monsoon? [ID:nSP92183]
MALAYSIAN POLITICS
Prime Minister Najib Razak will be looking to retain a state seat in Negeri Sembilan in an Oct. 11 by-election to give him a stronger hand in pushing forward reforms in UMNO, the main ruling party, at its Oct. 12 annual meeting. He's likely to emerge with the first by-election victory in peninsular Malaysia since the March 2008 general election, though the choice of a tainted candidate underscores how Najib is increasingly having to make compromises to shore up support for UMNO, causing investors to question whether he will keep his pledges to tackle graft. Meanwhile, the Malaysian Chinese Association, the second-biggest party in Najib's coalition, holds an extraordinary meeting for a confidence vote on its president. Divisions in the MCA are a further headache for Najib, as many of his coalition partners are losing support to the opposition. > FACTBOX-Five risks to watch in Malaysia [ID:nSP154167] > ANALYSIS-Racial politics heats up in Malaysia [ID:nKLR440394] > In Malay Muslim heartland, caning wins support [ID:nKLR529612] (Compiled by Andrew Marshall, Asia Political Risk Correspondent; Editing by Sanjeev Miglani)
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