
Core Viewpoint - Political uncertainty in Japan is expected to weaken the yen's favorable position, despite an initial rise following the recent election results [1] Group 1: Election Impact - The ruling coalition in Japan lost more than half of its seats in the upper house, leading to a temporary 0.7% increase in the yen against the dollar before it retreated [1] - The election results are perceived as unfavorable for Japanese assets, indicating a potential decline in the yen's strength moving forward [1] Group 2: Market Reactions - The Nikkei stock index futures showed little change, and the spot market was closed due to holidays [1] - Rodrigo Catril, a strategist at the National Australia Bank, noted that while uncertainty typically benefits the yen initially, the overall outlook post-election is not positive for the currency [1]