Shares in Tokyo have plunged following Friday’s vote for the leadership of Japan’s main ruling Liberal Democratic Party. The election of Ishiba Shigeru as the new LDP president has investors reconsidering their bets for economic policy.
The Nikkei 225 fell sharply from the start of Monday trading on the Tokyo Stock Exchange.
The index sank more than 1,900 points from Friday’s close.
The yen weakened against the dollar and stock prices surged after Takaichi Sanae advanced to a runoff vote in the LDP race. Takaichi had taken a cautious stance toward raising interest rates.
Following Ishiba’s victory, analysts say traders have been unwinding their positions as they wait for more information on his policies.