“Reflecting concerns about Prime Minister Ishiba’s succession”
Interest rate hike trend affecting the stock market,
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, ‘The Japanese stock market showed a 4% decline at the opening due to increased wariness towards the incoming Prime Minister Ishiba Shigeru.’,
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, ‘The Nikkei 225 index fell to around 38,132, about 1,700 points lower than the previous day’s closing of 39,829 at the Tokyo Stock Exchange at 9:06 a.m., marking a 4.26% drop. It immediately widened its losses right after the opening.’,
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, ‘It is interpreted that the market reacted to the uncertainty surrounding Prime Minister-elect Ishiba Shigeru’s policies. On the 27th, Ishiba Shigeru was officially elected as the leader of the Liberal Democratic Party through the final vote. He is scheduled to officially take office as Prime Minister at an extraordinary session of the Diet on October 1st.’,
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, ‘The market anticipated that Prime Minister-elect Ishiba will continue the Kishida administration’s economic policies. The outlook is that based on his past experiences in agriculture, forestry and fisheries, and local revitalization, he will focus on boosting the economy in the early stages of his term and gradually emphasize distribution.’,
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, ‘However, concerns have been raised by investors and businesses regarding a review of the tax system. Prime Minister-elect Ishiba is proposing measures such as strengthening taxation on financial income, corporate taxation, defense tax, and income tax reform.’,
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, ‘Furthermore, Prime Minister-elect Ishiba’s favorable stance on interest rate hikes is also a variable. Kiwoom Securities explained, “After the election news, the yen-dollar exchange rate rapidly fell from 146 yen to the 142 yen range, leading to a strong yen which caused the Japanese Nikkei futures to plunge by over 4.7% on the 27th.” They added, “The narrative of yen carry trade unwinding, similar to a recession, has weakened compared to before, but temporary volatility may increase.”‘,
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, ‘As of 9:10 a.m. on the same day in the Tokyo foreign exchange market, the yen-dollar exchange rate has fluctuated around the low 142 yen level, marking a 0.27% decrease compared to the previous trading day.’,
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