Overview

• Tokyo stocks surged, with the Nikkei 225 marking new intraday and closing highs and briefly jumping more than 2,300 points to 48,150.04.
• The yen dropped by more than two yen against the dollar as traders repositioned following the leadership result.
• Market participants pointed to expectations for pro-growth fiscal spending and continued monetary accommodation, reviving Abenomics comparisons and fueling a so‑called “Takaichi trade.”
• The rally and currency move followed a September BOJ meeting where two policy board members urged rate hikes, raising expectations for an October move.
• Takaichi’s perceived caution toward raising interest rates has increased pressure on the BOJ to reassess its near-term strategy ahead of its next meeting.