Japanese Stock Exchange Plunges Due to Ishiba Elections...Should We Quell Market Disturbance?

[Anchor]
Market vigilance is growing as Shigeru Ishiba, the new president of Japan's Liberal Democratic Party, put forward financial income tax and defense tax increases.

Since taking office as prime minister, the main task has emerged as how to quell market instability in state administration.

Correspondent Kim Se-ho's report from Tokyo.

[Reporter]
On the first trading day since Shigeru Ishiba took office, the Nikkei index started sharply lower.

Continuing the decline, the 38,000-mark collapsed to close 4.8% at 37,919.

It's the biggest drop in the next trading day since the 1990 Liberal Democratic Party presidential election.Japanese media, including

Nihon Keizai, analyzed that the spread of anxiety over the Ishiba government's economic policies.

Governor Ishiba weighs distribution in economic policy, especially in taxation of financial income, corporate and defense tax increases, and income tax reform.

However, concerns about the tax increase policy seem to have been reflected in the market.

[Tokyo citizen: This is not the time to raise taxes. People's lives can be difficult again.]

A spokesman for the Japanese government said it would work closely with the central bank on the stock market's downward move and make every effort to manage the economy and finances.

[Yoshimasa Hayashi / Japanese Chief Cabinet Secretary: We will keep an eye on economic and financial market trends at home and abroad, and at the same time, we will work closely with banks and banks.]

In the midst of this, Ishiba announced that he would dissolve the House of Representatives after taking office and hold a general election on the 27th of next month.

As he said he would ask for the trust of the people, a preliminary evaluation and judgment on the policy are expected to take place at this time.

Ishiba will be named prime minister tomorrow after an extraordinary session of the National Assembly.

How much the new government will quell market instability is expected to affect the future power of state administration.

I'm Kim Se-ho from YTN in Tokyo.