Takaichi Win to Support Japanese Stocks, Weigh on Yen, Bonds

Japan’s stock market will likely get support while the yen and long-term government bonds come under pressure following the surprise victory of pro-stimulus Sanae Takaichi in the nation’s ruling party leadership election.

That’s the view from investors and strategists including Pepperstone Group Ltd. and Nomura Securities Co., who expect the yield curve to steepen. The ascent of Takaichi, a proponent of easy fiscal and monetary policy, will likely raise concern over rising bond supplies while reducing expectations of a Bank of Japan rate hike later this month.