Market Views: What does Japan's political shift mean for the yen and equity markets?

Japan’s political landscape has undergone its most significant shift in years, with the surprise election of Sanae Takaichi as leader of the ruling Liberal Democratic Party (LDP), positioning her to become Japan’s first female prime minister. This leadership change immediately reverberated through financial markets, triggering a wave of optimism among equity investors while raising complex questions about the future trajectory of the Japanese yen.