Japan's Kishida talking the talk, markets to cheer massive stimulus promises

Japan's ruling party head candidate Fumio Kishida says if he becomes prime minister, he will have the Bank of Japan maintain a 2% inflation target and massive monetary stimulus. 

Meanwhile, the uncertainty over elections is usually a bearish factor.

However, this time around stocks in Japan are cheering the prospects of such leadership and easy money for longer. 

Stocks appear to be rallying on signs that the country's political establishment may be in for a shake-up.

This makes for a rare domestic driver for Toyo's markets, which usually depend on Wall Street for cues.

Japan is counting down to both the end of the term for members of the parliament's lower house and a party vote to chose the next LDP leader, now Prime Minister Yoshihide Suga.

The winner of the now wide-open LDP race must call a general election by Nov. 28.

Kishida previously said that he intends to compile a spending package worth several tens of trillions of yen to cushion the blow from the coronavirus pandemic, which is surging in the fourth wave in Japan.