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21h ago

Takaichi’s LDP Win Powers Market Rally as She Signals Diplomatic Caution

Advisers say she may forgo a Yasukuni visit to ease tensions ahead of her expected Diet confirmation.

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Sanae Takaichi is regarded as an arch-conservative firmly aligned with Shinzo Abe’s ideological camp. A regular visitor to the controversial Yasukuni Shrine, she reinforces her nationalist credentials despite fierce criticism from China and South Korea. (AP)

Overview

  • Japanese equities jumped to a record, with the Nikkei closing at 47,944.76 and the yen weakening to around ¥150 per dollar as investors bet on fiscal expansion.
  • Longer-term borrowing costs climbed, including the 30‑year yield to about 3.3%, reflecting expectations of Abenomics‑style stimulus and tolerance for easier monetary conditions.
  • Sanae Takaichi has emphasized close communication with the Bank of Japan and signaled caution on further rate hikes, reinforcing market views of a dovish tilt.
  • Political headwinds persist as the LDP leads a minority government, leaving the scale and speed of any stimulus uncertain despite the so‑called “Takaichi trade.”
  • Takaichi met Komeito leader Tetsuo Saito, is arranging talks with President Donald Trump in Japan from Oct. 27, seeks a meeting with China’s Xi Jinping at APEC in South Korea, and saw an aide postpone a Taiwan trip to avoid friction.