Many media reports are suggesting that Yoshihide Suga is leading the race to be Japan’s next prime minister, with a main question being whether he, without a large faction of his own, will just be a temporary placeholder for new leader.
It is attention-grabbing for some analysts and soothsayers to speculate on politics, but this is no casual matter.
Regional markets enjoyed another bout of strong performance in July. Global market sentiment remained buoyant due to optimism about the development of a vaccine for COVID-19; upbeat earnings of big technology companies; and assurance from the US Federal Reserve (Fed) that monetary policies would remain highly accommodative in the foreseeable future.
US Treasury (UST) yields traded in a very tight range, with the yield curve ending flatter in July.
The global economic recovery is continuing, although at a marginally slower pace; this is to be expected considering the impact of the second COVID-19 wave on the US sunbelt.
The Japanese equity market dropped in July, with the TOPIX (w/dividends) declining 4.02% on-month and the Nikkei 225 (w/dividends) falling 2.60%.