Japan’s Nikkei index fell 4.6% on concerns over Ishiba’s policies.
The Tokyo Stock Exchange’s key Nikkei index, which tracks share prices of Japan’s 225 leading companies, fell 4.65 percent in trading on Monday amid investor concerns about the economic policies of Shigeru Ishiba, who will head the country’s government on October 1 after being elected head of the ruling Liberal Party. Democratic Party (LDP). This is reported by TASS.
Ishiba, who won the race for the post of prime minister, previously announced the need to “normalize” monetary policy (MCP). The Minister of Economic Security, Sanae Takaichi, who entered the second round with him, advocated continuing the implementation of a soft monetary policy, but lost.
Over the past few years, the Bank of Japan has pursued ultra-loose monetary policy to stimulate the market and end a multi-year period of deflation. In the spring, for the first time in 17 years, he raised the key interest rate, which had a negative value, and at the end of July, against the backdrop of inflation exceeding the target, he raised it for the second time in six months – to 0.25 percent.
After this, the regulator found itself the object of criticism due to the fact that the tightening of monetary policy undertaken against the backdrop of poor economic statistics became one of the key factors that collapsed stock markets around the world.
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