US presidential election, if Mr. Trump wins, it is questionable whether it will lead to a weaker yen and higher stocks - a repeat of the rally in 2016.

November 5, 2024 9:58 JST (excerpt)
Corporate tax cuts and deregulation are positives for the Trump trade, concerns are tariffs
If Mr. Harris wins, there is a possibility of a stronger yen, with increased volatility due to confusion over the result
In the event of former President Trump of the Republican Party winning the U.S. presidential election on the 5th, the initial reaction in Japan's financial markets is expected to be buying dollars and selling yen, and buying stocks. If Vice President Harris of the Democratic Party wins, it is expected that the yen will strengthen.
However, the market's response could vary significantly depending on the results of the congressional elections, leading to various scenarios. In addition, if confusion spreads over the election results, there is a possibility that market volatility will increase.

Summarizing the views of market participants, if Mr. Trump wins, the expected push in the economy and corporate profits due to his advocated corporate tax cuts and deregulation is likely to strengthen the dollar in the currency market. At the same time, there is a possibility of a rise in stock prices of companies with large exposure to the U.S. in the stock market. Such as the export sector including automobiles and electronics.