0046 GMT - The yen strengthens against most other G-10 and Asian currencies in early trade on likely position adjustments. The baseline scenario of Japanese LDP's win in Sunday's lower-house elections is mostly priced in by FX markets, says CBA's Global Economic & Markets Research team in a research report. The LDP's "large majority means she does not have to compete with other parties with large promises on social spending and tax cuts," the team says. PM Takaichi "could choose to not 'play chicken' with financial markets by paring back budget stimulus," the team says. "This alternate scenario is not priced: JPY would strengthen and bond yields fall," the team adds. USD/JPY falls 0.2% to 156.82 and AUD/JPY is down 0.1% at 110.17, LSEG data show. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

February 08, 2026 19:46 ET (00:46 GMT)

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