What's the future of the stock market after Shigeru Ishiba's approval rating hits an all-time low?

The future of the stock market under Prime Minister Shigeru Ishiba, following his approval rating hitting an all-time low, appears uncertain and potentially challenging. Several factors contribute to this outlook: 1. **Political Instability**: The low approval rating reflects widespread public dissatisfaction, which could lead to increased political instability. This uncertainty is likely to affect investor confidence, potentially leading to volatility in the stock market. 2. **Economic Concerns**: The opposition parties are advocating for tax cuts and tighter immigration policies, which are at odds with the current administration's fiscal restraint policies. These policy differences could lead to a split in the market as investors react to the potential changes in economic direction. 3. **Interest Rate Policies**: The Bank of Japan's interest rate policies have already influenced the stock market. With a lower likelihood of Prime Minister Ishiba supporting interest rate hikes, as indicated by his alignment with Minister Sanae Takaichi who opposes rate increases, the market may face pressure from a strong yen, making Japanese exports less competitive. 4. **Market Sentiment**: The recent decline in Nikkei 225 index following the election results and the speculation about Ishiba's future suggests that market sentiment is negative. Investors may become more cautious, leading to a sell-off in Japanese stocks. 5. **Resignation Calls and Leadership Speculation**: The calls for Ishiba's resignation and the speculation about his future have created uncertainty. If these sentiments escalate, they could lead to a leadership change or a reshuffling of the coalition, further contributing to market instability. In conclusion, the stock market in Japan faces a challenging environment following the approval rating drop. The combination of political instability, economic concerns, and uncertainty around interest rate policies and leadership prospects suggests that Japanese stocks may continue to face downward pressure in the near term. Investors should closely monitor these developments and adjust their strategies accordingly.