The unexpected result in the leadership competition in Japan during the weekend is preparing for ripples through global financial markets with the yen that already drowned against the dollar on Sunday.
Saturday, the ruling The Liberal Democratic Party took advantage of Sani TakaychiAnd the conservative legislator put the first prime minister in Japan.
The markets expected that Shingero Koizumi would win financial caution. But the LDP decision to go with Takaichi, who prefers financial and shabby policies, can increase the bond market with high expectations that Tokyo will make more debt while the central bank rethink interest rates.
With the debt burden in Japan already more than 200 % of its gross domestic product, the possibility of further spending stimuli fed by debt may cause investors to demand higher rates on long -term bonds.
This can in turn add further pressure on bond yield elsewhere, such as the United States, which depends greatly on Japanese investors as the best buyers of the treasury.
The return on the cabinet for 10 years was fixed at 4.121 %. The US dollar increased by 1.2 % against the yen and an increase of 0.2 % against the euro.
The futures contracts with Dow Jones Industrial MALED have increased 37 points, or 0.1 %. S&P futures increased by 0.1 %, and Nasdaq Futures added 0.1 %.
American oil prices rose 0.9 % to $ 61.44 a barrel, and Brent crude added about 1 % to $ 65.15. Gold rose 0.1 % to $ 3,911.60 an ounce.
Takaishi is expected to be officially prime minister in a parliamentary vote later this month, and her approach will be examined towards President Donald Trump.
While I suggested that Japan re -negotiate the commercial deal that it concluded with the United States this summer, Takaychi has cleared its speech after securing the LDP leadership on Saturday, saying that this is not on the table now.
Meanwhile, the financial markets must continue to deal with continuous government closure, which shows no signs of completion any time soon and will maintain major economic indicators under the winding.
This leaves a issuance on Wednesday from the last meeting of politics in the Federal Reserve as the main economic report that must be seen next week as the central bank funds itself and is not affected by the closure.
Many federal reserve officials are scheduled to speak next week, including Chairman Jerome Powell on Thursday.
Since the government closure prevented the work statistics office from issuing its job report on September on Friday, Wall Street turns into alternative standards from the private sector.
On Sunday, the chief economist in Moody Mark Zandi warned Basically, there was no job growth in SeptemberQuoting data from Revyio Labs and ADP.
He said in a A series of posts on X. “But the special sources of job data fill in an impressive information gap, at least at the present time. This data shows that the labor market is weak and strikes.”
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2025-10-05 22:20:00
