Amid continued market turmoil following the Republican Party's major defeat in the U.S. midterm elections, the Nikkei 225 fell sharply on the 6th. The possibility of fiscal expansion has again come into focus amid the Takaichi administration's policy of responsible proactive fiscal spending.
Market volatility continued following the outcome of the U.S. midterm elections, and the Nikkei 225 fell sharply in Japanese trading on the 6th. Risk aversion among investors intensified, spreading selling pressure across the stock market.
The policy stance advanced by Prime Minister Takaichi Sanae (高市早苗) has been described as responsible proactive fiscal policy, and views have emerged that the combination of strong corporate earnings and fiscal stimulus could affect developments going forward.
In this environment, market participants have not viewed expectations for fiscal expansion negatively, and further strengthening of fiscal policy may be attracting attention as an option.