Japan Investors Stay Wary Takaichi Will Spur Another Bond Crash

Japanese Prime Minister Sanae Takaichi’s landslide election win saw a largely positive initial response from investors. But they remain wary of another market meltdown over her expansive spending plans.

In her first press briefing after a historic victory on Sunday, Takaichi acknowledged market concerns over how she’ll be able to cut the sales tax on food for two years while ramping up spending on defense and strategic industries. Worries that she would add to Japan’s mountain of public debt prompted yields to spike last month to the highest levels in decades.