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Japan's Market Uncertainty Intensifies as Takaichi Gains Power

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Japanese investors confront heightened uncertainty as Prime Minister Fumio Kishida's Liberal Democratic Party secures a decisive parliamentary majority, reshaping policy direction. Markets are grappling with potential shifts in fiscal strategy, with analysts warning that Kishida's strengthened position could accelerate yen volatility. The yen has already dipped below 150 against the dollar amid speculation about aggressive monetary easing, while government bonds face pressure from expectations of prolonged ultra-low interest rates. Investors remain divided on whether Takaichi's economic vision—prioritizing stimulus over austerity—will stabilize or exacerbate Japan's debt-to-GDP ratio, currently the world's highest at 260%.