Yen rebounds as Takaichi victory sparks fiscal stimulus optimism

The Japanese yen rebounded sharply in Asian trading on Monday, climbing 0.5% to 156.43 per dollar after hitting two-week lows. The move came following Prime Minister Sanae Takaichis decisive victory in Sundays snap election, giving her a strong mandate to pursue expansionary fiscal policies.re betting that increased fiscal stimulus, including potential tax cuts, could support the stock market, even as concerns over Japans rising debt persist. The election outcome also adds pressure on Japanese government bonds, with markets weighing the impact of looser fiscal policy on the broader financial landscape.

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