Overview

• Tokyo’s Nikkei 225 jumped 4.75% to a record 47,944.76 after Sanae Takaichi won the ruling party leadership, with an intraday high of 48,150.04.
• The yen weakened 1.8% to 150.13 per dollar and hit a record low against the euro at 176.22 as traders priced in looser policy.
• Long-dated Japanese government bond yields surged, with the 30-year briefly at a record 3.29% and the 40-year at 3.505%, while the 2-year yield fell.
• Interest-rate swaps put the probability of a Bank of Japan hike by December at 41%, down from 68% before the leadership vote.
• Takaichi backs debt-funded stimulus and continued monetary easing, lifting AI, defense and nuclear-linked shares, and she is weighing cabinet picks including Minoru Kihara and Toshimitsu Motegi.