CICC: Japan's Liberal Democratic Party wins big, excessive depreciation of the yen may lead to foreign exchange intervention.

According to a report from Zhongjin Research, on February 8th, Japan held a House of Representatives election. The mainstream media NHK reported that the Liberal Democratic Party won 316 seats, achieving a majority of over two-thirds on its own, exceeding the expectations of previous mainstream media polls. In the medium to long term, the possibility of amending the constitution may be put on the agenda, but in the short term, economic policies remain the top priority. Overall, the impact of this Japanese House of Representatives election on capital markets may lead to significant gains in Japanese stocks, a gradual increase in Japanese bond yields, excessive depreciation of the yen prompting forex interventions, and marginal improvements in global risk sentiment.