Turnbull's coalition may clinch enough seats to form majority government in Australia

Australian Electoral Commission won’t declare a definitive tally before July 15, when all the postal votes would have been received. But Prime Minister Malcolm Turnbull on Sunday declared victory in Australia’s election, hours after opposition Labor leader Bill Shorten phoned him to concede.

Though more than a week after voting day, it remains unclear if Prime Minister Malcolm Turnbull’s Liberal-National coalition has enough seats to form a majority government, chances remain high. However, the election has raised questions about Turnbull’s leadership, and left him without a strong mandate for much-needed economic and fiscal reforms.

The Australian Broadcasting Corp. predicted the coalition would get 77 seats, scraping it to a majority in the 150-member lower house. The focus will now turn to the likely make-up of the upper house, where Turnbull will have to negotiate with disparate independents and minor parties to pass savings measures.

“The immediate market implications are minor, with markets more focused on global than local events. However, the more complex political environment is less conducive to reform, which could weigh on Australia’s medium-term growth prospects,” said Paul Bloxham, chief Australia economist at HSBC Holdings Plc in Sydney.