Post #15698

Quick Update on Japan Japan is seeing a broad confidence shock across bonds and FX as fiscal risks come sharply into focus. Equities, on the other hand, could benefit from Takaichi’s pro-stimulus agenda. Japanese government bonds plunged, sending yields to fresh record highs across the curve and the yen continued to struggle. The trigger is Prime Minister Takaichi’s confirmation of a snap election on February 8, paired with a proposal to cut the food sales tax to 0% — a move that raises serious questions about fiscal sustainability with no clear plan to offset lost revenue. Takaichi favors policies like tax cuts and increased spending in growth areas (AI, defense, semiconductors) that directly benefit companies and boost domestic demand.