Reference News Network, October 10 report. According to the website of the "Nikkei" newspaper, on October 10, the Nikkei 225 Index futures at the Osaka Exchange plummeted to the 47,500 point range. That afternoon, the leader of the Liberal Democratic Party, Takayuki Higashikokubaru, and the representative of the Komeito Party, Teppei Saito, held a meeting. Around 3:30 p.m., there were reports that Saito planned to withdraw from the ruling coalition with the LDP. In the foreign exchange market, the yen rose against the dollar. The "Higashikokubaru phenomenon" driven by expectations of fiscal expansion and monetary easing reversed, leading to a surge in stock selling and a stronger yen.
Against the backdrop of uncertainty in the LDP-Komeito ruling coalition, concerns about the weakening of the ruling base further intensified the selling pressure. The December Nikkei 225 Index futures contract fell more than 1,000 points from the previous trading day's closing price.
After the Komeito Party announced its withdrawal from the ruling coalition, there was a brief surge in yen buying in the Tokyo foreign exchange market. The yen-dollar exchange rate reached 152.3 yen per U.S. dollar, rising 0.4 yen from before the withdrawal announcement. However, due to the general market belief that the Bank of Japan faces resistance to raising interest rates in the near future, and political uncertainty has increased, there was again a yen selling trend that strengthened the yen. (Translated/By Liu Lin)
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