Concerns that Japan is spending beyond its means have increased pressure on the yen and the nation’s government bonds since Takaichi called a snap election last month and announced plans to temporarily cut the sales tax on food. Many investors see an election victory for Takaichi as allowing her to add to Japan’s already heavy debt load.
(Feb 9) : The yen fluctuated after Japan’s ruling Liberal Democratic Party won an outright majority in Sunday’s lower house election, opening the door to more fiscal stimulus by Prime Minister Sanae Takaichi.
Japan’s currency dropped as much as 0.3% to 157.76 per dollar on Monday, reaching the weakest level in more than two weeks, before trading little changed. The LDP secured a two-thirds super majority in the 465-seat lower house by itself, according to public broadcaster NHK. The LDP’s haul of seats gives it the highest proportion of representatives in the lower house of any party in post-war elections in Japan.
