0154 GMT - Japan PM Ishiba's exit shifts focus to his successor, and what--if anything--that means for political stability, writes Chris Weston at Pepperstone. The market will weigh the extent of additional fiscal measures and budgets under a new leadership. "The degree of fiscal impulse will be important in containing upside in long-end JGBs." These developments will likely be seen as yet another reason to push the Bank of Japan's next 25bp hike into 2026, he says. That expectation is already in play, with swaps traders pricing only 12 bps of hikes by December, and Weston points to that as yet another reason why few want to own JPY at present. He looks for JPY weakness in Asia to become broad-based. USD/JPY last at 148.24.(fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

September 07, 2025 21:54 ET (01:54 GMT)

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