Trade or trap? Japan investors bet on Takaichi after landslide
Financial Times
February 15, 2026
AI-Generated Deep Dive Summary
Japan's investors are closely monitoring Prime Minister Takaichi's rise to power following his landslide election victory. With a stronger mandate, Takaichi is expected to push through ambitious economic policies that could reshape Japan's financial landscape. His plans to revise trade agreements and bolster domestic industries have sparked speculation about the potential impact on foreign investment, currency stability, and bond markets.
The yen has shown early signs of volatility as investors weigh the implications of a more assertive government. While some see opportunities for growth under Takaichi's protectionist-leaning policies, others worry about market disruption. The prime minister's focus on reducing Japan's reliance on imports could lead to stricter trade regulations, which may either attract foreign capital or deter it. Meanwhile, Japanese bonds are being closely watched, with yields fluctuating as investors assess the potential for inflation and interest rate changes.
For global markets, Japan's economic direction holds significant weight due to its status as one of the world's largest economies. Takaichi's policies could influence international trade dynamics, particularly in key sectors like automotive and technology. As Japan re-evaluates its economic strategy, foreign investors are left wondering whether this is a golden opportunity or a risky bet.
This situation matters deeply for business readers as it highlights the interconnectedness of global markets and the potential for geopolitical shifts to impact financial stability. Whether Takaichi's leadership proves to be a catalyst for growth or a source of instability will likely shape Japan's economic trajectory—and by extension,
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Originally published on Financial Times on 2/15/2026