Hedge Funds Chase Profits From Knife-Edge Japan Vote

Hedge funds are employing a range of strategies to profit from Japan’s too-close-to-call leadership race, including plans to sell stocks, bet on a stronger yen, or trim risk assets.

The sweep of trading plans has emerged as opinion polls are split ahead of Saturday’s vote on whether reformist Shinjiro Koizumi or right-leaning Sanae Takaichi will be the next leader of Japan’s ruling party. The outcome may have long-term implications for Asia’s second-largest economy, given the policy differences between the two contenders.