Prime Minister Sanae Takaichi¡¯s landslide election win saw a largely positive initial response from investors. But they remain wary of another market meltdown over her expansive spending plans.
In her first press briefing after a historic victory on Sunday, Takaichi acknowledged market concerns over how she¡¯ll be able to cut the sales tax on food for two years while ramping up spending on defense and strategic industries. Worries that she would add to Japan¡¯s mountain of public debt prompted yields to spike last month to the highest levels in decades.
Takaichi emphasized the prudence of her ¡°responsible proactive fiscal policy¡± while insisting that Japan ¡°must make a complete break from excessive austerity and chronic underinvestment for the future.¡±
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