Foreign investors are pouring money into Japanese stocks as the country approaches a pivotal parliamentary vote. Investors have maintained this momentum for three consecutive weeks, ending October 18, signaling growing confidence in Japan’s market. The main driver? Anticipation of Sanae Takaichi’s victory in the prime ministerial race. If elected, Takaichi would become Japan’s first female prime minister, a landmark moment for the nation.
Why Are Investors Interested?
Sanae Takaichi is recognized as a fiscal dove, meaning she supports policies that encourage government spending and economic growth. Investors see her leadership as potentially transformative, expecting her to boost market-friendly policies and economic reforms. This optimism has led to a surge in foreign investments, making the Japanese stock market a hot spot in Asia right now.
What’s Next for Japan’s Stock Market?
With the historic vote on the horizon, all eyes are on Japan. If Takaichi wins, it could mark the beginning of a new era for Japanese politics and the economy. Global investors are betting big on Japan’s future, making it a market to watch in the coming weeks.
Sources:
Reuters – Foreign investors pile into Japan stocks ahead of historic PM vote
