Shigeru Ishiba, who unexpectedly won the election last Friday and became the new leader of the Liberal Democratic Party, will officially take office as Japan's Prime Minister tomorrow. However, there are concerns that he may adopt a hawkish stance and support further interest rate increases, which triggered a sharp rise in the yen exchange rate last Friday and the opening of Japanese stocks on Monday. , Nikkei 225 plummeted 1,900 points, but Shigeru Ishiba's recent speech emphasized that the monetary easing policy will be continued. (Previous summary: Breathe a sigh of relief! The Bank of Japan keeps interest rates unchanged. When will the U.S. dollar arbitrage bomb detonate next?) (Background supplement: The yen has risen again, and foreign capital has been selling strongly for three weeks in a row. Will the Bank of Japan raise interest rates next week? It is difficult for an arbitrage bomb to explode? Solution) Shigeru Ishiba, the former secretary-general of the Liberal Democratic Party of Japan, unexpectedly "reversed victory" last Friday (27th), defeating his opponent Sanae Takaichi and becoming the new leader of the Liberal Democratic Party. It is expected that he will officially take office as Japan's leader in the provisional parliamentary vote on October 1. The 102nd Prime Minister. However, Bloomberg reported that Shigeru Ishiba, who is considered a "hawk" in monetary policy, unexpectedly won the election, catching investors who had originally bet on his opponent launching more monetary stimulus measures off guard. The liquidation of positions established to encourage the Bank of Japan to maintain low interest rate policies caused Japanese stocks to plummet in early trading on Monday. The Nikkei plunged 1,900 points. The Nikkei plunged more than 1,900 points at the opening on Monday, hitting a low of 37,943 points. At the time of writing, it was trading at 37,937 points, a drop of about 4.7%. The Topix also fell 3.25% to 2,651 points. Source: Trading View Analyst: The appreciation of the yen may become a headwind for Japanese stocks. The market reacted strongly to Shigeru Ishiba's victory last Friday. The exchange rate of the U.S. dollar against the yen once rose by 1.8% and then fell slightly by 0.3% to 142.68 yen. The author writes the current report 142.43 (-0.29%). Source: Google Finance Rina Oshimo, strategist at Okasan Securities in Tokyo, said: "The beginning of the week is likely to be volatile. As Shigeru Ishiba advocates fiscal consolidation and other measures, the appreciation of the yen may become a headwind for Japanese stocks." The profit outlook is bleak, with exporters weighing the most on the Topix. Auto stocks generally tumbled, and real estate stocks also tumbled. Bank stocks, which fell last week on speculation that the market would win, rose on Monday. Extended reading: Kishida Fumio’s resignation as Prime Minister will pave the way for the Bank of Japan to raise interest rates?How do analysts view the future trend of the yen and Japanese stocks? Shigeru Ishiba advocates the continuation of the "monetary easing" policy. It is worth noting that because Shigeru Ishiba calls on the Bank of Japan to further clarify its policy normalization plan, supports the central bank to continue to stay away from ultra-low interest rates, and emphasizes on government spending. With the help of the government, we can further develop the rural economy. Because the market believes that his monetary policy is leaning towards a hawkish stance, it may increase expectations for the Bank of Japan to raise interest rates. But he stressed in an exclusive interview with NHK on Sunday that Japan's monetary policy needs to remain loose given current economic conditions, suggesting the country needs to keep borrowing costs low to support a fragile economic recovery. Asked about a possible interest rate hike, he said, "This is decided by the Bank of Japan, which is responsible for achieving price stability, while working closely with the government." It is unclear whether Shigeru Ishiba's remarks mean that he will adopt a more dovish stance, but Kyodo News' latest report said that Kato Katsunobu will become the next finance minister. Kato has always been a supporter of Abenomics, so this wave of appointments It is regarded by the outside world as a fire-fighting move by Shigeru Ishiba to alleviate market concerns that he may adopt a hawkish stance. Ishiba plans to dissolve parliament on Oct. 9 Analysts said investors are bracing for a near-term increase in volatility until Ishiba's policies become clearer. It is worth noting that Jiji News Agency reported on Sunday that multiple Liberal Democratic Party cadres revealed that Shigeru Ishiba has finalized a plan to dissolve the Diet on October 9, announce it on October 15, and hold a general election for the House of Representatives on October 27. Related reports: The Bank of Japan is hawkish again: If inflation is in line with expectations, interest rates will be raised again, and the yen will be on a roller coaster. The president of the Bank of Japan: The economy is in line with expectations, and interest rates will continue to be raised. The yen has risen sharply, is it bad for Japanese stocks? GDP Revised Unexpectedly" Japanese stocks plummeted by thousands of points, will it hinder the Bank of Japan from accelerating interest rate hikes? "Japanese stocks plunged 1,900 points" New Prime Minister Shigeru Ishiba put out the fire: Continue monetary easing policy! 10/9 Dissolution of Congress> This article was first published in BlockTempo, the most influential blockchain news media.