Japanese Stocks Will Do Well Under Suga If History Is a Guide
- Japan stocks always rise after a long-term premier is replaced
- Equities have seen historical gains of between 3% and 30%
This article is for subscribers only.
A new leader taking over from a long-term incumbent can often make investors skittish. Yet as Yoshihide Suga settles in as prime minister of Japan, market participants can take solace in one fact -- no modern Japanese leader taking over from a long-serving premier has seen stocks fall on their watch.
Every successor to a Japanese leader who has been in office for around five years or more has lasted at least a year in office, and local stocks have risen during each of those terms, according to data compiled by Mizuho Securities.