Japanese Stocks Climb as Yen Weakens; LDP’s Loss Raises Uncertainty in Policy Direction and BOJ’s Rate Decisions

Japanese markets surged Monday, supported by a weakened yen amid political shifts. The Topix index gained as the ruling Liberal Democratic Party lost its parliamentary majority, sparking concerns over potential policy shifts. The yen fell, intensifying speculation around the Bank of Japan’s stance on future rate hikes. Analysts suggest that while political instability may temporarily delay hikes, persistent yen weakness keeps rate hikes on the table, possibly by December or January. The Nasdaq reached a new high in U.S. markets, while the S&P 500 and Dow dipped slightly.