Japanese prime minister Fumio Kishida has given up. Beset by public anger about cost-of-living pressures and a party corruption scandal, Kishida has announced that he will not seek re-election as leader of the country’s governing party. He is expected to step down next month. Change at the top of Japanese politics comes as the local stock market recovers from a bruising sell-off, which saw the Nikkei fall 12.4%, its biggest one-day drop since 1987.
Japanese shares suffered their worst two-day drop since the 1950s, says River Akira Davis in The New York Times. The plunge could mark the end of one of the country’s “most enduring stock rallies” in decades. The benchmark Topix index has gained 36% since the start of last year amid excitement about corporate reform. Yet the speed of the drawdown – which came after the yen strengthened – has left many asking if Japan’s much-vaunted revival was just an illusion driven by currency weakness. The weak yen boosts the earnings of big listed multinationals, such as Toyota.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Should you buy Japanese equities?
-
Thousands of estates are sitting unclaimed in the UK – is your family name on the list?More than 5,700 unclaimed estates are on a government list waiting to be found by living relatives. We take a look at the list, and explain how to make a claim
-
420,000 more pensioners to be dragged into paying income tax – how does tax on the state pension work?Hundreds of thousands more pensioners will need to pay tax on their pension income at the end of this tax year, new HMRC data shows. We look at how taxation on the state pension works.
-
Vietnam: a high-growth market going cheapOpinion The threat of tariffs has shaken Vietnamese stocks, but long-term prospects remain solid, says Max King
-
Three top-notch Taiwanese companies cashing in on the advent of AIOpinion Eric Chan, investment director and co-manager of the Aberdeen Asian Income Fund, highlights three potential Taiwanese winners in the technology industry
-
South Korean won hits 15-year low – what it means for 'Korea discount'After Yoon Suk Yeol's failure to declare martial law, South Korean markets are reeling, with the weakest won since 2009. Will this worsen the Korea discount?
-
Vietnamese tycoon Truong My Lan on death row over the world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
-
Japan’s medium-sized stocks provide shelter from trade warsNicholas Price, portfolio manager of Fidelity Japan Trust, tells us where to invest in Japan
-
What South Korea's martial law turmoil means for the economyA shock declaration of martial law in South Korea was swiftly put down, but it exposed the nation's vulnerable democracy. What happens now?
-
India's stock market drops - why it's thrown investors into frenzyNifty 50, India's stock market index, has dropped 8% from a September record amid concerns of an economic slowdown and foreign investors pulling out
-
Is India still a good investment?India's long-term story is compelling, but after a spectacular bull run, warning signs are starting to show. Is investing worth the risk?
