Japanese equities saw an inauspicious start to the administration of Prime Minister Fumio Kishida, as stocks tumbled with some pointing fingers at the new premier’s plans for wealth redistribution.
The hashtag "Kishida Shock” trended on Twitter, as the 225-issue Nikkei Stock Average was set to extend its losing streak to an eighth day, the longest such run since 2009. Kishida has backed the lifting of wages in a policy he has called a "new type of Japanese capitalism.” While he has yet to outline specific policies, he has indicated support for higher capital gains taxes.
"There is no new growth without redistribution,” Kishida said Monday at his inaugural news conference as prime minister. "If the fruits of growth are not redistributed, consumption and demand will not increase.”