Shigeru Ishiba (🇯🇵former Defense Minister) wins LDP leadership election to become next PM.

Huge and swift market reaction:

•JPY↑ vs everything: this is a reflection of both Ishiba’s win (who is supportive of BOJ policy normalization & rate hikes), AND the pricing OUT of pre-election front-runner Takaichi, who was the only candidate with a pro-Abenomics continuation (buy JGBs endlessly) / rate hike opposer

•NKY futures↓ over -4%: in addition to the JPY↑ move, Ishiba is a big China hawk, and NKY just erased its China-driven equity market gains from/for the week