Stocks in Japan experienced a significant decline following the election of Shigeru Ishiba as prime minister, whose hawkish stance on interest rates unsettled the markets.
The election of Ishiba is seen as a pivotal moment for Japan's economy, particularly after the Bank of Japan's recent rate hikes aimed at curbing inflation.
Economists have coined the term 'Ishiba Shock' to describe the market's response to the sudden shift in leadership and its implications for monetary policy.
The Nikkei 225 index's drop of over 4 percent reflects investor expectations that Ishiba's rise will lead to a departure from longstanding low interest rate policies.
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