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The Japanese political scene has exploded again! Prime Minister Shōwa suddenly announced his resignation. This is going to be interesting.
On Sunday, Maofa seemed to have made a statement saying he would step down. In recent weeks, many people have been clamoring for him to resign. He lost the election, you know.
With Mao Fa's departure, everything has come to an end. To be honest, his term has been quite miserable. He lost the election, and the ruling coalition no longer holds a majority in both houses of Congress. Investors are scratching their heads looking at Japan's fiscal plan.
Originally, there was supposed to be a vote next Monday to decide whether to elect the party leader early. Now what? It has been canceled. Mao Fa said it himself. It seems he has sensed something ominous.
Once Maofa leaves, the market is expected to be chaotic for a while. It's still uncertain who will take over. Some analysts say that when the Asian market opens next Monday, the yen and long-term bonds may be affected.
Want to be the next Prime Minister? You need to get the support of 20 MPs first. Winning the party election is not enough; you also have to pass in Parliament. Right now, Parliament is a complete mess.
Although the ruling coalition has lost its majority, it is still the leader in the House of Representatives. Therefore, their candidate has the highest chance of becoming the Prime Minister. However, it is still uncertain.
In the next few weeks, everyone's eyes will be on Japan. Who is the new Prime Minister? What is the policy like? These could all affect Japan's economy and financial markets. Investors, keep your eyes wide open and watch closely.