Traders’ Guide to Navigating Japan’s Upper House Election

Investors are bracing for a potential triple dip in Japanese bonds, stocks and the yen after Sunday’s upper house election, as polls point to a defeat for Prime Minister Shigeru Ishiba’s Liberal Democratic Party.

A loss of majority for the ruling bloc, which is already in the minority in the lower house, threatens to destabilize economic policy and push up government spending. That could trigger selloffs across assets, strategists and investors say.