Elections

The president did not announce significant new tax cuts or economic stimulus.

Ignore Japan's constitutional debate. Rearmament will accelerate anyway. Tech, defense stocks, and industrials will benefit. The threat to JGBs is real but will probably be contained.

Japan's new government will continue, but politics and foreign policy have become more competitive. 

US assets should benefit in the short run as investors recognize that US checks and balances still operate – and so does the election cycle. 

Erdogan's rule continues to decline. Social unrest will persist, governance will erode, and the macro backdrop will deteriorate further. We recommend underweighting Turkish assets.