Japan's stock market is witnessing significant turmoil following the election of Shigeru Ishiba as the new Prime Minister. Despite the uncertainty in Japanese markets, where the Nikkei 225 index tumbled nearly 5%, the Shanghai benchmark surged over 5%. Ishiba, known for his support of higher interest rates and a potential shift in Japan's military alliance with the U.S., is poised to call a snap election as he fills his cabinet. Meanwhile, the yen has strengthened against the dollar due to the market's reaction to Ishiba's unexpected victory amid recent inflation data, leading to further fluctuations in currency values. Analysts are awaiting clarity on Ishiba's policies and their implications for both the Japanese economy and international relations, particularly with China.