Japan’s new prime minister rattles the markets
Investors appear unimpressed with Fumio Kishida, the man chosen to succeed Yoshihide Suga as Japan’s prime minister.

Investors appear unimpressed with Japan’s new leader. The ruling party has chosen Fumio Kishida to replace Yoshihide Suga as the head of the world’s third-biggest economy. Kishida was the continuity candidate.
That means more loose fiscal and monetary policy, “decarbonisation, digitalisation” and the “promotion of free trade”, says Ma Tieying of DBS. The new government is preparing to launch yet another stimulus package, worth at least 5.5% of GDP. Happily, Covid-19 is back under control in Japan, with vaccination rates now exceeding those in the US. Japanese stocks rallied in September when Suga announced his resignation, say Toshiro Hasegawa and Gearoid Reidy on Bloomberg. There was hope that Japan could turn the page on a difficult year. It is a measure of just how “uninspiring” investors find Kishida that the benchmark Topix index has since given back all of their post-Suga gains.
Kishida has got off to a bad start with investors, say Leo Lewis and Kana Inagaki in the Financial Times. This week he suggested that he could increase Japan’s capital-gains tax. The resulting selloff, dubbed the “Kishida shock”, sent the Topix down by 3% on Tuesday. Higher taxes would mark a “sharp reversal” from the pro-investment line taken by Tokyo since 2013.
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
Japanese investors aren’t that gloomy, say Hideyuki Sano and Tom Westbrook on Reuters. The country’s shares outperformed both the US and Europe last month. A better Covid-19 picture and improved corporate earnings outlook also bode well. Supporters view Kishida as “a steady consensus-builder”, but many doubt he can see through overdue structural changes to Japan’s “old-fashioned” bureaucracy. He will face the voters in a general election at the end of this month.
-
Who is the richest person in the world?
The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
By Vaishali Varu Published
-
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
By Ruth Emery Published
-
Crypto is “Monopoly money”
FTX won't be the last crypto scandal, because cryptocurrencies mirror the worst aspects of the finance industry.
By Alex Rankine Published
-
OpenAI – corporate drama unleashed
OpenAI, the firm behind ChatGPT, was in uproar as its boss was booted out, briefly snapped up by Microsoft and then brought back again.
By Dr Matthew Partridge Published
-
Can Lidiane Jones be Bumble's perfect match?
Dating app Bumble is taking on Lidiane Jones, a well-regarded leader in tech, as its new boss. Can she work her magic in a new arena?
By Jane Lewis Published
-
Are corporate bonds a good bet?
Corporate bonds pay a slightly higher yield than governments, but spreads aren’t generous by past standards.
By Cris Sholto Heaton Published
-
SoftBank’s shares slump on quarterly loss
Japanese investment group SoftBank’s technology funds have struggled, not least because of an investment in WeWork.
By Dr Matthew Partridge Published
-
M&S shares shift from frumpy to fabulous as pre-tax profits are up by 56%
M&S is performing strongly and has announced it will pay a dividend for the first time since the pandemic.
By Dr Matthew Partridge Published
-
The rise and fall of Sam Bankman-Fried – the “boy wonder of crypto”
Why the fate of Sam Bankman-Fried reminds us to be wary of digital tokens and unregulated financial intermediaries.
By Jane Lewis Published
-
Three defence stocks set to flourish in an era of instability
A professional investor tells MoneyWeek where he’d put his money. Tom Bailey highlights three defence stocks that look promising.
By Tom Bailey Published