Takaichi Trade Stalls as Investors Await Policy From Would-Be PM

Even as talk of a new coalition bolsters Sanae Takaichi’s bid to become Japan’s prime minister, investors want to see specifics on policy before they pile further into bets that she will keep advocating for monetary and fiscal stimulus.

The so-called Takaichi trade — buying Japanese stocks, while selling domestic bonds and the yen — appears to be losing momentum. It’s prompting some strategists to question how much Japanese stocks may be able to climb in the near-term, and to ask whether bond yields will slip.