Huatai Securities: Attention to the risk of Japanese stock/Japanese yen Fluctuation, the policy vacuum period may bring uncertainty.

Golden Ten Data, October 29th news, Huatai Securities stated that, we believe that, 1) before the formation of a new majority party alliance in the Japanese parliament, there may be a period of policy vacuum in Japan; 2) during the policy vacuum period, the possibility of the government/central bank introducing new economic policies and adjusting interest rates is low, which may put pressure on Japanese stocks and the exchange rate of the yen against the US dollar. Through a comparison of the policies of the major political parties in Japan, we believe that the parties are relatively consistent in supporting the development of the semiconductor industry, but there are differences in military and nuclear energy policies. It is recommended to pay attention to the possibility of fluctuations in related zones. If Japan experiences a longer period of policy vacuum before forming a new majority party alliance, it may bring some uncertainty to the exchange rate of the yen against the US dollar and the Nikkei index.