2026-02-05
36 分钟The Economist.
Last October, a new populist leader took charge in Japan.
Japan's diet has elected Sanae Takaichi as the country's next Prime Minister.
She will become the first woman to lead the country.
Takaichi, a self-proclaimed Thatcherite, rode in on the promise of economic upturn.
After years of a weak yen and what she called excessive austerity, she's promised tax cuts and heavy government spending.
Takaichi looking to the difficult times that Japanese households have been struggling with,
especially with the cost of living crisis and stagnant economy and stagnant wages.
She was doing well in the polls, and so, in a bid to consolidate her support,
she called a snap election for February 8th.
I am putting my position as Prime Minister on the line.
I want the people themselves to decide whether they are willing to entrust Sanae Takaichi with the task of running our nation.
Now she looks likely to lead her party to a landslide victory.
But while voters at home appear to like her promises to spend more, others aren't so sure.
She's starting to make some stimulus promises that are unnerving investors a bit.
One concern is that higher bond yields in Japan could push bond yields higher elsewhere in the world,
including the United States.
And the recent sharp sell-off in Japanese government bonds has caused fear to spread across global markets.
Big moves in Japan bond markets today.
10-year, 20-year yield at a high that we haven't seen since 1999.