Trading on September 30, the first business day after the election of Ishiba Shigeru as the new ruling Liberal Democratic Party president saw the Nikkei stock average price fall by over 1,900 points and end at 37,919.55.  A market source pointed out that the impact of Takaichi Sanae’s loss in the leadership race is greater than that of Ishiba’s victory.  On the previous trading day on September 27, the yen weakened, and stock prices rose due to expectations of Takaichi’s victory, as she is opposed to a Bank of Japan interest rate hike.  However, as Takaichi’s loss in the runoff election occurred after the stock market closed that day, the development was reflected with a delay, leading to the latest stock price decline.  But many market analysts view this as a temporary move.  

In the financial market, there is caution regarding LDP President Ishiba’s remarks during the leadership election about reviewing taxation on profits from stock investments and his emphasis on fiscal consolidation.  Ishiba emphasized over the weekend that the trend of monetary easing must continue, aiming to alleviate concerns.