Ishiba’s resignation ends a tenure marred by bruising election results and leaves markets in limbo over Japan’s fiscal direction.
The yen dropped in early Asia trading as Japanese markets braced for fresh volatility after Prime Minister Shigeru Ishiba announced over the weekend that he will step down.
The currency fell as much as 0.7% against the US dollar, wiping out Friday’s advance, while strategists said long-dated government bonds look vulnerable amid growing concerns over fiscal spending.
