Overview
- Japan’s Nikkei 225 jumped roughly 4–5% to about 48,061 on Monday and extended gains above 48,500 on Tuesday, marking back‑to‑back record highs tied to the so‑called Takaichi trade.
- The yen weakened sharply, hitting a record low near ¥175 per euro and sliding against the dollar as investors positioned for looser policy and larger fiscal support.
- Bond markets signaled steeper yields with selling in long‑dated JGBs, pushing the 30‑year yield to around 3.28%, while traders pared near‑term Bank of Japan hike bets.
- Equity gains were led by pharma, autos, machinery and semiconductor shares, while financial stocks lagged on expectations for continued easy monetary conditions.
- Sanae Takaichi’s LDP leadership puts her on track for a mid‑October parliamentary confirmation as prime minister, though limited Diet majorities and coalition frictions could curb an aggressive policy push.