[Capital Economics: Japan's political uncertainty is unlikely to drag down the country's bond and stock markets] Odaily Planet Daily reports that Thomas Mathews, Head of Asia-Pacific Markets at Capital Economics, stated in a report that Japan's political uncertainty is unlikely to drag down the country's bond and stock markets and may even provide a short-term boost. Despite the split between the long-standing ruling coalition of the Liberal Democratic Party and Komeito, the market has remained largely indifferent. Mathews pointed out that investors may expect this turmoil to be temporary and that newly elected Liberal Democratic Party leader Sanae Takaichi will ultimately become Prime Minister—this is also the baseline scenario expected by Capital Economics. He added that while prolonged policy uncertainty could weaken market interest in Japanese assets, the ultimate impact would depend on the economic consequences. However, if the government becomes more divided, it could pose long-term risks—especially if it hinders corporate governance reforms that help improve profitability. (Jin10)