Takaichi Win Jolts Yen and Japanese Bonds, Triggers Stock Surge

Pro-stimulus lawmaker Sanae Takaichi’s near-certain elevation as Japan’s next prime minister jolted financial markets, with the yen and long-term bonds tumbling even as equities surged to all-time highs.

The politician’s surprise victory in a ruling party leadership vote at the weekend reduced expectations that Bank of Japan may hike interest rates as soon as this month while raising worries about more debt supply to finance stimulus.