[Japan Market Conditions] Stocks continue to rise, temporary increase due to Prime Minister's resignation announcement - yen falls, bonds rise

Updated 2024/8/14 16:02 JST (some excerpts)
In the Japanese market on the 14th, stocks continued to grow for 3 days, supporting expectations of US interest rate cuts. It became clear that Prime Minister Fumio Kishida would not run for the Liberal Democratic Party presidential election in September, and there were scenes where the increase widened, but growth was sluggish due to awareness of uncertainty about the future, including successors.
Prime Minister Kishida announced that he would not run for the presidential election, leading to political distrust
　　The yen exchange rate rose to the first half of the 1 dollar = 146 yen range at one point due to purchases disgusted by political uncertainty, and then sold back to the 147 yen level. As for the bond exchange rate, buybacks prevailed after 5 year government bond bidding was over.
　　Chief bond strategist Michiya Eiji of SBI Securities pointed out that Prime Minister Kishida, who had the strongest opposition to interest rate hikes, announced that he would not run for the presidential election, making it easier for the Bank of Japan to proceed with an exit strategy. He said that there are many candidates for the next president who are basically facing the direction of normalization.