Japan’s shares rise to the records after Sanae Takaichi won the race to the head of the ruling party

Stay in view of the free updates

Simply subscribe to Japanese business and financing Myft Digest – it is delivered directly to your inbox.

The shares of Japan to register the highlands and put the yen on the US dollar, where investors put bets on the “Takaychi Trade” with more financial stimulation by the expected Prime Minister in the country.

The Nikkei 225 standard increased by 3.9 percent to 47,548 points on Monday in Tokyo while merchants’ reaction to Sanae Takaichi was As a leader of the ruling liberal Democratic Party. The broader Topix participation index has gained 2.6 percent to a new standard.

The rise of Takaichi to the leader of the Liberal Democratic Party places it on the right track to become the first prime minister in Japan in a vote in Parliament later this month. Traders in stocks, years and currency expect that their administration will expand financial spending and maintain pressure on the bank of Japan to maintain low interest rates.

Takaichi trade is a bet Japan “He is heading to great financial motivation, light monetary bias, the weakest yin and the most slope return curve, and we see the market playing strongly this morning,” said a broker in Tokyo.

The stocks jumped in medicines, cars, engineering and semiconductor companies on the open market.

However, financial stocks suffered as traders fell on the bets that the Bank of Japan would raise interest rates later this month. RSona fell by 3.2 percent while Mitsubishi UFJ was nearly 2 percent.

On the weekend, the polling suggested that Chenegero Koizumi is more financially careful to win the LDP leadership.

Massamichi Adocosh, an UBS analyst, said that the possibility of increasing the rate of this month is now “less than 50 percent” due to “uncertainty: the American economy with government closure and the new head of the government that has a critical political position.”

The return on Japanese government bonds decreased in the short term by 5 basis points, and the Japanese yen placed by 1.6 percent against the US dollar, to 149.85.

Japanese government bonds have been sold a long time ago, as revenues on JGBS increased for 30 years 0.12 ° C to 3.27 percent.

Osamo Takashima wrote in a memorandum that Takachi “has called for a long -term contraction”, so some believe in the market that her victory may be negative for the yen.

“However, given the balance of political power in the liberal Democratic Party and Japan’s relationship with the United States, we believe that it will be difficult for the next Prime Minister to implement reflexic policies (she).”