Japanese Assets Rise as Takaichi Win Eases Fiscal Concerns

A ‘buy Japan’ trade gained momentum on Thursday after Prime Minister Sanae Takaichi’s decisive election victory increased confidence among investors.

The nation’s 30- and 40-year bond yields dropped at least 8 basis points, while the Topix extended its rally. The yen earlier strengthened as far as 152.27 against the dollar and is the best-performing G-10 currency this week. After volatility fueled by worries over fiscal sustainability, yields have now retreated to near levels seen in early January when the snap vote was first reported.