Morgan Stanley: If Seiko Hashimoto succeeds Yoshihide Suga as Prime Minister, Japanese stock market is expected to rise.

Analysts at Morgan Stanley Mitsubishi UFJ Securities said that if Seiko Hashimoto is chosen as the successor to Prime Minister Yoshihide Suga, the Japanese stock market may benefit as she is likely to favor fiscal expansion. "Seiko Hashimoto is considered to have a strong tendency towards expansionary fiscal policies, which may be seen as more favorable for the Japanese stock market," analysts including Sho Nakazawa wrote in a report. If she becomes the next prime minister, foreign investors in particular believe that Japan's fiscal and monetary policies will shift towards expansion. As core inflation has already risen to around 3%, Seiko Hashimoto is unlikely to implement "excessively loose monetary policies" this year. Seiko Hashimoto also supports nuclear power, which could be beneficial for stocks in the electricity and natural gas sectors.