Japanese Stock Market Record High as Pro Business Leader to be PM

Japan’s ruling Liberal Democractic Party has elected a pro-business politician to be the leader of the party and therefore, if confirmed, Sanae Takaichi will be Japan’s next Prime Minister.

If confirmed, Takaichi will also become Japan’s first female Prime Minister.

What do we know of Takaichi?

A fan of Margaret Thatcher’s policies, Takaichi is pro-business.  We have seen a headline today that she is “The Iron Lady of Liquidity”.  Following on from Thatcher’s former tag by the Russians as “The Iron Lady”, Takaichi is thought to be very much an admirer of Margaret Thatcher’s policies of a ‘free market’ and she is also a supporter of government spending on stimulus whilst building confidence in the Japanese economy to lower government borrowing costs.

Market Reaction

Assuming Takaichi does become Japan’s first female Prime Minister, we expect government stimulus for businesses whilst trying to renegotiate terms with the US on tariffs to strengthen both the US $ and the Japanese ¥.  In anticipation of this, the Nikkei Dow peaked today at a record high of 48,179 and closed trading at 7.30am UK time at 47,944.  That’s up nearly 5% in 1 day.

Comment

Interesting times for Japan and we welcome a leader and party that is pro-business.  Certainly, both Europe and the UK need pro-business leaders (and stimulii) at present if they are not going to be left behind.