Tokyo’s benchmark stock index plunged on Monday following Friday’s vote for the leadership of Japan’s main ruling Liberal Democratic Party. The election of Ishiba Shigeru as party president has investors reconsidering their bets for economic policy.
The Nikkei 225 ended the day at 37,919, down 1910.01 points or 4.8 percent from last week’s close.
Investors offloaded shares across the board, including those of automakers and other export-related companies on the stronger yen against the dollar.
On Friday, the yen fell and Tokyo share prices surged after Economic Security Minister Takaichi Sanae advanced to a runoff vote in the LDP race. Takaichi had taken a cautious stance about further interest rate hikes.