Hong Kong ( CNN ) -- Shinzo Abe , Japan 's one-time prime minister , may get a second chance at the job . After serving as the country 's leader from 2006 to 2007 , his Liberal Democratic Party looks set to return to power this weekend in national elections . Some investors believe the second coming of Abe will be good for Japan 's equity markets . `` Investors are pricing in ... much greater monetary easing , '' said Ben Collett , head of Japanese equities at Louis Capital Markets in Hong Kong . In mid-November , Abe called for unlimited monetary easing to jumpstart the economy . He also urged the Bank of Japan to raise its current 1 % inflation goal to as much as 3 % . Since then , investors betting on an Abe administration have pushed the Tokyo Nikkei up by more than 10 % . Still , Collett doubts if Abe can deliver on his calls for more stimulus and thinks investors might not see action . `` That 's just talk to get into office . He 's putting a line in the sand . I do n't know how he achieves it . '' If anything , Collett believes Abe 's timing is `` quite fortuitous '' and that Japan 's economy has `` hit bottom '' and is ready to bounce back . And if Abe returns to office , he is expected to push back harder against a rising China than his predecessors , if his previous assertive leadership style is anything to go by . Asia 's first and second largest economies have been embroiled in a months-long trade dispute because of rival territorial claims in the East China Sea . Both China and Japan lay claim to a small grouping of islands , known as the Diaoyu Islands in Chinese and the Senkaku Islands in Japanese . On September 11 , Japan nationalized the islands causing an uproar in China . In retaliation , Chinese consumers slowed their purchases of Japanese products . In October , Japan revealed its September exports to China fell more than 14 % . A stronger stance against China may rattle trade ties even more , Collett said . And that may also weaken Japan 's currency , the yen . `` In fact , Abe 's comments may be intentionally aimed at destabilizing sentiment on the yen , '' Collett added , noting that `` anything that removes popularity of the yen as a safe haven '' will be good for exporters . Japan 's economy relies heavily on exporters -- big-name brands that include well-known names Toyota , Sony and Panasonic . A weaker currency means Japan 's exporters earn more yen when they repatriate overseas profits back to Japan . Since mid-November , the yen has weakened 5.2 % as Abe 's chances of returning to power have risen . Still , while many economists are becoming more bearish about Japan 's economy , which has just slipped into recession , Collett remains bullish . `` Japan has never looked better to me . I 'm very , very optimistic on it , '' Collett said . `` I 'm hopeful for the market and the economy and Abe 's timing is solid . '' `` He 'll initiate a cycle of new industrial development -- a rebirth of heavy industry in Japan that includes energy , hi-tech , space exploration and defense industries . ''
Some economists believe second term of Shinzo Abe will be good for Japan stock markets . Collett : ' Investors pricing in monetary policy ' after Abe 's support for such measures . Abe expected to push back harder against China than his predecessors . Collett : Abe may want to use yen to remove its popularity as safe haven .