Nikkei 225 Drops Nearly 5% After Ishiba's Selection

Japan's Nikkei 225 index fell nearly 5% early Monday after the ruling Liberal Democrats elected Shigeru Ishiba as the next prime minister, succeeding Fumio Kishida, who resigned amid plummeting popularity. Ishiba, who is set to take office on Tuesday, plans to largely continue Kishida's approach to revitalizing Japan's economy, though analysts viewed his rival, Sanae Takaichi, as the more investor-friendly choice. Following the leadership change, the yen strengthened against the U.S. dollar, which negatively impacted major exporters like Toyota and Honda, whose shares fell significantly. Ishiba also expressed support for raising interest rates and taxes on corporate and financial assets, which could further affect economic dynamics. The dollar's value dropped from over 146 yen to under 143 yen after the party's vote, reflecting market volatility in response to the political shift.