The U.S. trade deal will further support improving economic fundamentals in Japan, which underpin our constructive equity positioning on the country.

But while this gave the economy a badly-needed dose of stability, it still couldn't salvage Japan's politics from upheaval. Japan is one of the most stable democracies in the world; their elections are rarely surprising.

Sohei Kamiya's Sanseitō Party won 14 seats in Japan's Upper House elections, appealing to young voters with a "Japanese first" platform focused on culture, birth rates and food security.