Takaichi's Approval Ratings Plunge Amid Market Fears

Japanese Prime Minister Sanae Takaichi's approval rating has hit its lowest point since she took office last year, making it increasingly difficult for her administration to tackle market concerns. The prime minister's advocacy of fiscal stimulus and criticism of higher interest rates have heightened investor anxieties about Japan's public finances, leading to higher bond yields.

Takaichi's dovish approach has also caused headaches in the currency market, with the yen sliding to a four-decade low. Despite Finance Minister Satsuki Katayama's repeated threats of 'decisive' action, markets remain unconvinced and yields are on track for further rises.

The administration's expansionary fiscal policy has been met with skepticism by investors, who are concerned about the strain it will put on Japan's finances. Former BOJ board member Takahide Kiuchi warned that to recover market trust, the administration needs to show specific facts and figures demonstrating its focus on fiscal discipline.