What comes next after Japan's Prime Minister steps down?

There's, I think, a profound sense that the party is completely out of touch

with voters. I'm looking at a bunch of weak prime

minister ships continuing on into the future.

Prime Minister Ishiba, who's now stepping down.

One of his signature achievements, I think, while he's been in office, was

his astute management of relations with the opposition.

And whoever the party selects now to replace him is probably going to have to

draw on that expertise. It's going to be a lot of expectations

about economic stimulus going forward. Watch out for sectors like industrials,

consumer discretionary. All of those will likely see some

choppiness over the next month or so as investors brace for the next month.

Let's discuss the impact of Japan's political uncertainty on market with

Bloomberg Politics and economics reporter Sakura Murakami in Tokyo.

Also joining us, Rina Ishihara, chief in Japan, equity strategist at Jp morgan

Securities, was a former Bank of Japan official and also studied under Governor

Kazuo Ueda. Sakura, let's start with you.

Give us a sense of where we are right now.

We know that she buys resignation was expected.

It is a timing. It came sooner than most people

anticipated. Yes, Prime Minister Ishiba over the

weekend found that there was growing support within the LDP to see him stand

down. And I think we can say that basically he

just felt that he didn't have the support that he needed in the party to

kind of continue over the next few months.

So that's why he decided to stand down last night.

And we're going to see more momentum over the coming weeks over who to pick

for the successor. And that also speaks to how the LDP

wants to reinvent itself. It's seen dismal election results.

Part of the reason that Ishiba did stand down and it's going to have to find a

way to reconnect with voters, to reconnect with the public.

And so these are there's going to be more cues and more signs, too, as to how

the LDP plans to rebrand itself over the next few weeks,

really, in terms of market reaction, how are you assessing it?

Yes, you can get a bit cheaper and yields get a bit higher.

I think the focus going forward, the wallabies of who will be the successor

and there will be separable or main candidates and one of them calling for

a, you know, Abenomics or expansionary fiscal policy and monetary easing.

So market has to price in with a certain probability of that.

So market reaction is not the direction as of today.