According to a Nikkei article, the yen weakened and stock prices rose from October 2025 onward, with large daily moves seen in Tokyo markets. Meanwhile, reflation-trade positions have begun to show signs of change.
After Takaichi Sanae (高市早苗) won the LDP presidential election in October 2025, the yen weakened and stock prices rose. The yen weakened by more than ¥10 against the US dollar, while the Nikkei Stock Average's gain exceeded ¥20,000.
Meanwhile, trading positions in reflation trades, based on expectations among hedge funds and others of an economic recovery and rising inflation, have begun to change. Some observers suggest that the composition of trades combining purchases of stocks with sales of government bonds and the yen may be changing.