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Japan ETFs rally sharply as election of party leader Takaichi signals ‘fiscal taps may stay open’

1. EWJ rose 2.1% on Takaichi's election as Japan's Liberal Democratic Party leader. 2. Investors expect fiscal stimulus and tax relief under Takaichi's leadership. 3. Takaichi's policies may pause monetary tightening by the Bank of Japan. 4. Japanese stocks have surged over 20% this year, outpacing U.S. equities. 5. Nikkei 225 index reached record highs, indicating strong market sentiment.

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FAQ

Why Very Bullish?

The election of Takaichi suggests proactive fiscal stimulus, historically linked to positive market movements. Previous stimulus measures in Japan have led to significant stock gains.

How important is it?

The article discusses political changes directly correlating with investment sentiment in Japanese stocks, directly influencing EWJ's price.

Why Short Term?

Immediate market reactions are expected as stimulus plans are likely to rollout soon. The quick gain in the Nikkei 225 suggests strong investor sentiment.

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