At the start of the week on the Tokyo stock market on the morning of the 30th, the Nikkei Stock Average fell sharply. The decline compared to the previous weekend’s closing price at one point exceeded 1,900 yen. Ahead of Liberal Democratic Party President Shigeru Ishiba’s nomination as prime minister, there was growing concern about the next government’s economic and financial policies, including additional interest rate hikes and tightening of financial income taxation for the wealthy. Sell ​​orders have increased for many stocks, and the market is in a state of “Ishiba shock.”

The morning closing price of the Nikkei average was 37,980 yen.34, down 1,849 yen.22. At one point, the price dropped by 1,900 yen and 84 sen to 37,928 yen and 72 sen.

The appreciation of the yen and the depreciation of the dollar in the foreign exchange market also weighed on the stock market. Last week in the market, Sanae Takaichi, who contested the runoff from Ishiba in the presidential election, was positive about continuing monetary easing, leading to a “takaichi trade” in which the yen depreciated and stock prices rose. On the 30th, it was easy to place sell orders due to this reaction.

During the presidential election, Ishiba argued that the Bank of Japan’s independence in conducting monetary policy should be respected. He also mentioned strengthening financial income taxation. Mr. Ishiba emphasized on the NHK program on the 29th that “the trend of monetary easing must be maintained,” but the stock market has responded harshly.

On the 30th, the Tokyo stock market temporarily fell by over 1,600 yen, a sign of “Ishiba shock”