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Japan PM resigns, fuelling stock market optimism
Japan PM resigns, triggering stock surge amid stimulus hopes and political uncertainty
Japan PM resigns, triggering stock surge amid stimulus hopes and political uncertainty
– Asian stocks rose after Shigeru Ishiba’s resignation, boosting hopes for fiscal stimulus from a new leader.
– Two candidates for LDP leadership could shape Japan’s monetary policy direction amid rising market optimism.
The yen weakened to 148.36 against the dollar, as uncertainty about future interest rates in Japan grew.
Ishiba’s resignation follows significant pressure from within the ruling Liberal Democratic Party after recent election losses.
Market analysts anticipate his successor will support fiscal expansion, which has bolstered Japanese equities, especially exporters benefitting from a weaker yen.
Leadership Contest
Two primary candidates are emerging for the LDP leadership race in early October.
Sanae Takaichi, a conservative, advocates for continued stimulus, while Shinjiro Koizumi represents a reform-minded approach.
The next leader’s policies will likely influence the Bank of Japan’s monetary policy direction.
