Analyst: Yen under increased pressure, political turmoil undermines investment confidence in Japan

On July 21, Jin10 reported that Vantage Markets analyst Hebe Chen stated that the Japanese Senate elections have rekindled political uncertainty, adding vulnerability following last October’s turmoil. This round of fluctuation coincides with the August 1 deadline for US-Japan trade negotiations, which will amplify pressure on the yen. The situation is even more complex for Japanese stocks. While the depreciation of the yen is favourable for export companies, political noise may undermine overall investment confidence. However, any reliable path to resolving issues—though unlikely in the short term—could break a year-long stalemate and shift focus back to Japan’s long-term economic prospects.