Japan Strategists Size Up Leadership Candidates on Market Impact

  • Ishiba, Kono and Motegi may push for higher interest rates
  • Appointment of younger candidates may be supportive of yen
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Japan’s ruling Liberal Democratic Party will select a new leader next month in an election that may sway defense stocks, bolster shares of ride-sharing services and help determine the trajectory of the yen.

While some analysts warn it’s too early to trade off of candidates’ policies as there’s no clear front-runner, strategists say a desire for the central bank to normalize policy is shared by at least three contenders — former Defense Minister Shigeru Ishiba, Digital Minister Taro Kono and LDP Secretary-General Toshimitsu Motegi. Economic Security Minister Sanae Takaichi is seen as dovish.