FOCUS: Selling of yen, bonds to continue after LDP's huge Japan election win

The landslide election victory by Japan's ruling Liberal Democratic Party is likely to allow Prime Minister Sanae Takaichi to pursue her tax cuts and other fiscally expansionary policies, leading to further selling of the yen and government bonds.The so-called Takaichi trade, characterized by higher stocks, a weaker yen and rising government yields, is expected to remain intact, with the yen projected to move toward 160 versus the U.S. dollar and the key 10-year government yield possibly climbing to 2.5 percent.The benchmark Nikkei index is expected to reach 60,000 in the first half of this…READ FULL ARTICLE