Deja vu for Japan markets as Abe-disciple Takaichi's victory jolts investors

Group 1 - Takaichi's victory as Japan's next prime minister raises investor speculation about potential stimulus policies similar to those of Shinzo Abe, which could boost stocks but weaken the yen [1][3] - Takaichi advocates for increased government spending and tax cuts to address rising living costs, while criticizing the Bank of Japan's interest rate hikes [2][3] - The initial market reaction to Takaichi's win saw Japanese shares reach record highs, with the Nikkei index soaring nearly 5% in two trading sessions [3][4] Group 2 - Comparisons are drawn between Takaichi's leadership and Abe's tenure, which saw significant fiscal stimulus and corporate governance reforms that led to a doubling of the Nikkei index [4][5] - Current economic conditions differ from Abe's time, with Japan facing inflation now compared to deflation a decade ago, and the yen has depreciated significantly since Abe's departure [6] - As of Tuesday, the yen traded at 150.67, with expectations of a Bank of Japan rate hike diminishing, leaving the currency vulnerable amid ongoing tariff negotiations with the U.S. [7]