‘Kishida Shock’ Hits Japan Markets With Investors Wary of Redistribution Plans
- Nikkei dips on first full day with new prime minister in power
- New PM hints at higher capital gains tax, wages over dividends
Fumio Kishida in Tokyo, Japan, on Oct. 4.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
Japanese equities saw an inauspicious start to the administration of Prime Minister Fumio Kishida, as stocks tumbled with some pointing fingers at the new premier’s plans for wealth redistribution.
The hashtag “Kishida Shock” trended on Twitter, as the Nikkei 225 Stock Average was set to extend its losing streak to an eighth day, the longest such run since 2009. Kishida has backed the lifting of wages in a policy he has called a “new type of Japanese capitalism.” While he has yet to outline specific policies, he has indicated support for higher capital gains taxes.