Yen Surges as Ishiba Wins LDP Leadership

Shigeru Ishiba was elected leader of Japan's ruling Liberal Democratic Party (LDP), defeating Sanae Takaichi in a surprising run-off, which will make him Japan's next Prime Minister. Ishiba, a former defense and agriculture minister, is known for his hawkish stance on China and monetary policy and aims to establish a more balanced defense relationship with the US while preventing deflation. His election caused the yen to surge against the dollar, reflecting market expectations of monetary policy normalization. Ishiba's victory follows an unusual LDP leadership race with nine candidates and the party's decision to disband most internal factions. He emphasized his commitment to truth, security, and economic revitalization in his victory speech. Ishiba's experience with tough issues like agriculture reforms and his cautious approach towards China are expected to shape his leadership.