Gaoshi Zaomiao seizes control of the House of Representatives, market focuses on fiscal policy design

On the morning of February 9th in Asia, the Japanese yen continued its recent decline. Shoki Omori, Chief Interest Rate and Foreign Exchange Strategist at Mizuho Securities Tokyo, stated that the overwhelming victory of the Liberal Democratic Party has eliminated political uncertainty and enhanced policy execution. The market focus has shifted to the design and communication of fiscal policy, and the risks of fiscal expansion before the election have been digested by the market. The key is whether these risks will strengthen or gradually fade away.