Japanese stocks dropped – and the yen rallied in choppy, indecisive trade – late Friday as the political fortunes of Sanae Takaichi dimmed dramatically and her ascension to Japan’s prime ministership was suddenly brought into real doubt.
“We should be prepared that the dollar-yen rate could fluctuate in a wide range, up to the ¥155 level, over the coming month,” said Hideo Kumano, executive economist at Dai-Ichi Life Research Institute, in a report released on Thursday.
The Nikkei 225 stock average rallied after Takachi, an outspoken proponent of aggressive fiscal spending and loose money, became the president of the Liberal Democratic Party (LDP) – and thus the presumptive prime minister – on Saturday, while the yen weakened.
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