A Trader’s Guide to Candidates for Japan’s Prime Ministership

Japanese Prime Minister Shigeru Ishiba ’s plan to step down has investors scrambling to assess the implications for the nation’s stocks, government bonds and currency.

The yen slid as much as 0.8% against the dollar on Monday, after being among the weakest of its Group of 10 peers last week. Japanese stocks, which often benefit from the currency’s depreciation, rose, with the index hitting a new all-time high. Thirty-year bonds declined as investors braced for further fiscal risks.

To read more about the politics and policy leanings of potential candidates to replace Ishiba, click . For more on what they mean for markets, read on:

Sanae Takaichi

Takaichi , a former internal affairs minister who finished second to Ishiba in an Liberal Democratic Party leadership race last year, is seen as relatively dovish on monetary policy. While stock investors view this in a positive light, bond holders worry that fiscal expansion may boost super-long yields and weaken the yen.

Morgan Stanley MUFG Securities Co. ( Takeshi Yamaguchi , Sho Nakazawa )

Resona Holdings Inc. ( Hiroki Takei )

Sumitomo Mitsui DS Asset Management Co. ( Masahiro Ichikawa )

Phillip Securities Japan Ltd. ( Kazuhiro Sasaki )

Shinjiro Koizumi

Koizumi , the son of a former prime minister, is seen as fairly hawkish on monetary policy and could continue with the current administration’s views and support raising interest rates. He has also worked to bring down the price of rice, one of the driving factors of inflation.

T&D Asset Management Co. ( Hiroshi Namioka )

Sumitomo Mitsui Trust Asset Management Co. ( Katsutoshi Inadome )

Pepperstone Group Ltd. ( Dilin Wu )

Daiwa Securities Co. ( Eiji Kinouchi )

Other Candidates

Other contenders include Takayuki Kobayashi , a former economic security minister, Yoshimasa Hayashi , the current chief cabinet secretary, Finance Minister Katsunobu Kato and former Foreign Minister Toshimitsu Motegi .

Invesco Asset Management Japan Ltd. ( Tomo Kinoshita )

Nomura Securities Co. ( Hajime Yoshimoto )

Shinkin Asset Management Co. ( Naoki Fujiwara )