Stocks Tumble in Japan Following Party’s Election of New Prime Minister

Published On Sep 29, 2024, 10:45 PM

Japan's governing party has elected Shigeru Ishiba as its leader, who advocates for raising interest rates to manage inflation. This change has caused a significant drop in Japan's stock market, particularly the Nikkei 225 index, which fell over 4% following the election. Economists have attributed this decline to the market's expectation that Ishiba would push for higher rates, contrasting with his opponent, Sanae Takaichi, who supports maintaining lower rates. The broader economic context includes previous interest rate hikes by the Bank of Japan and ongoing inflation concerns.

Read full article

Stock Forecasts

EWJView EWJ chart on TradingView

Negative

The election of Shigeru Ishiba and his hawkish stance on interest rates could lead to continued volatility in Japanese stocks. Investors might react negatively to the prospect of higher interest rates, which generally dampen stock prices. If this trend continues, the market may see further declines, especially in sectors sensitive to interest rate changes.

Related News

Masato Kanda: The man behind Japan's $170bn bid to prop up the yen

Oct 2, 2024, 7:28 PM

Mastao Kanda unleashed an estimated 25 trillion yen to support the currency when it slumped against the dollar.

EWJ

Stocks Tumble in Japan Following Party’s Election of New Prime Minister

Sep 29, 2024, 10:45 PM

Stocks dropped after Japan’s governing party chose Shigeru Ishiba, a critic of the country’s longstanding ultralow interest rates, as its leader.

EWJ

In Japan, the Era of ‘Free’ Mortgages Is Coming to an End

Sep 4, 2024, 12:00 AM

Homeowners are gearing up to pay more on their loans as the Bank of Japan’s rate increases signal the end of decades of ultralow interest rates.

EWJ