(Bloomberg) — Japanese shares slumped on Monday after ruling party elections raised expectations of further central bank interest rate hikes. Iron ore jumped after major Chinese cities loosened curbs on home-buying.
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The Nikkei and Topix indexes both fell at the open following Shigeru Ishiba’s victory at the Liberal Democratic Party leadership contest. Ishiba has said he supports the Bank of Japan’s independence and normalization path in principle, and that the country needs to defeat deflation. The yen, which surged after Ishiba was picked, declined on Monday.
“It’s about the dollar-yen,” Daniel Lam, head of equity strategy at Standard Chartered Wealth Solutions, told Bloomberg Television’s Shery Ahn and Haidi Stroud-Watts. “The new leadership is going to be more hawkish in their stance.”
Australian shares rose and Korean equities slipped while…
