Japan’s incoming prime minister Shigeru Ishiba is set to call snap elections for October 27. The prospect of his victory sent stocks higher and the yen lower. Ishiba supports the Bank of Japan’s drive to hike interest rates and corporate levies. He plans to boost the ruling party’s popularity and restore confidence after a damaging party slush fund scandal.
Ishiba backs the creation of an “Asian NATO” and wants to respond more strongly to Chinese or Russian breaches of Japan’s airspace or waters. There are questions about how the government plans to pay for the defense upgrade and find enough recruits for the military.
