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    What Japan’s Political Uncertainty Means for Its Market Rally

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    The long-ruling Liberal Democratic Party has lost its parliamentary majority, raising questions about the policy stability that has lured investors.The steady course of the Japanese economy and business environment that has helped attract a torrent of investment in the past two years could be undercut by the political turmoil resulting from the country’s parliamentary elections on Sunday.Japan’s economy, though not growing by leaps and bounds, has inched back from the disruptions of the Covid-19 pandemic. The emergence of long-sought inflation has given the Bank of Japan room to raise interest rates for the first time in nearly two decades.Following moves by Warren Buffett last year to increase his holdings in some of Japan’s biggest trading firms, investors have shifted their money to Japan from China, which has economic and geopolitical risks. Corporate earnings in Japan have remained solid and government-led changes, such as guidelines recommending takeover offers be given serious consideration, have prompted companies to take steps to enhance their appeal to investors.Stocks in Japan have experienced one of their strongest rallies in decades. The benchmark Nikkei 225 index is up nearly 50 percent since the beginning of 2023.Now, the Liberal Democrats — the political party that has governed Japan for all but four years since 1955 — has lost its majority in the powerful lower chamber of Parliament, leaving the future structure of the government and direction of its economic policies uncertain.“The reasons that Warren Buffett and others got excited about Japan are not lost, but you need the background that is a stable macro environment,” said Jesper Koll, a director at Monex Group, a financial services firm. “For now, the bastion of stability element that has made Japan attractive is not going to be working.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Stocks Tumble in Japan After Party’s Election of New Prime Minister

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      Stocks dropped after Japan’s governing party chose Shigeru Ishiba, a critic of the country’s longstanding ultralow interest rates, as its leader.Stocks in Japan fell sharply after the country’s governing party chose a leader some view as hawkish on interest rates, underlining how central bank decisions continue to set the course of the world’s fourth-largest economy after decades of easy money policy.On Friday, Japan’s Liberal Democratic Party elected Shigeru Ishiba, a proponent of raising interest rates to help curb inflation, as Japan’s next prime minister.Mr. Ishiba narrowly defeated Sanae Takaichi, a disciple of Shinzo Abe, who remains committed to the former prime minister’s longstanding policies aimed at strengthening Japan’s economy by maintaining ultralow interest rates.Japan’s benchmark Nikkei 225 index fell more than 4 percent in early trading on Monday.Some economists said the decline, which they described as the “Ishiba Shock,” was caused by the unwinding of stock trading that reflected expectations that Ms. Takaichi would be elected.The market jitters show how the recent L.D.P. election came at a pivotal moment for the Japanese economy.Following a recent surge of inflation, the Bank of Japan has raised interest rates twice this year. The bank’s governor, Kazuo Ueda, has indicated he plans to continue increasing rates, though it is unclear how quickly that might happen.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Your Thursday Briefing: A Deadly Helicopter Crash in Ukraine

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      Also, why economists are alarmed about China’s demographic crisis.“I started to yell the name of my daughter, too, because I didn’t know where she was,” said one mother, whose daughter survived the crash.Ed Ram/Getty ImagesUkrainian minister dies in a crashUkraine’s minister of internal affairs, Denys Monastyrsky, was one of at least 14 people who died yesterday in a helicopter crash. He is the highest-ranking Ukrainian official to die since Russia invaded last year. An investigation is underway, but there were no initial signs that the aircraft had been shot down.The helicopter crash also damaged a kindergarten in a suburb of Kyiv. It happened at 8:20 a.m., a time when parents typically drop their children off at the school. There were conflicting death tolls, but officials said that a child had been killed.Monastyrsky’s death deals a blow to a ministry that has played a critical role in the war effort: He oversaw police and emergency services and handled rescue efforts after missile strikes. His top deputy was also killed, as well as other pivotal figures in Ukraine’s wartime leadership.Davos: In a video address to the World Economic Forum in Switzerland, Volodymyr Zelensky, the Ukrainian president, called for a moment of silence to remember the victims, then made a passionate speech.“Tragedies are outpacing life. The tyranny is outpacing democracy,” Zelensky said. “The time the free world uses to think is used by the terrorist state to kill.”Crimea: The U.S. has long refused to give Ukraine the weapons it needs to target Crimea, which Russia annexed in 2014. But that stance is starting to soften, despite the risk of escalation. Kyiv is looking to strike Russia’s land bridge, a critical supply route that connects Crimea to Russia through the occupied cities of Melitopol and Mariupol.The median age in China has already surpassed that of the U.S. and could rise above 50 by 2050. Gilles Sabrie for The New York TimesChina’s self-inflicted crisisEconomists are alarmed by China’s recent news that deaths outnumbered births last year for the first time in decades, a situation arriving sooner and more sharply than many experts had forecast.China’s declining population threatens its position as the most populous country. Its shrinking work force could also hobble the global economy and erode its strength in coming decades. And the government’s efforts to reverse or slow the trend may be too little, and too late.The State of the WarWestern Military Aid: Kyiv is redoubling its pleas to allies for more advanced weapons ahead of an expected new Russian offensive. The Netherlands said that it was considering sending a Patriot missile system, and the Pentagon is tapping into a vast stockpile of American ammunition in Israel to help meet Ukraine’s need for artillery shells.Dnipro: A Russian strike on an apartment complex in the central Ukrainian city was one of the deadliest for civilians away from the front line since the war began. The attack prompted renewed calls for Moscow to be charged with war crimes.Soledar: The Russian military and the Wagner Group, a private mercenary group, contradicted each other publicly about who should get credit for capturing the eastern town. Ukraine’s military, meanwhile, has rejected Russia’s claim of victory, saying its troops are still fighting there.A shortage of factory employees in China — driven by a more educated workforce and a shrinking number of young people — could raise costs for consumers outside China, potentially exacerbating inflation in countries that rely heavily on imported Chinese products. The shrinking population could also mean a decline in spending by Chinese consumers, which could hurt global businesses that rely on China.Within China, a plunging birthrate poses a major threat to its embattled real estate sector, which accounts for roughly a quarter of its economic output. And a shrinking work force may struggle to support China’s aging population. A 2019 report predicted that the country’s main pension fund, which many older Chinese residents rely on for income, would run out of money by 2035.Self-inflicted crisis: China sped up its demographic struggles with its one-child policy, which was in effect from 1980 until 2016. Now, the government’s recent attempts to induce a baby boom have failed, as the high cost of housing and education deter potential parents.“Hope,” Maria Ressa said yesterday, after the verdict. “That is what it provides.”Eloisa Lopez/ReutersA victory for Maria RessaIn a rare legal win, Maria Ressa, the Philippine journalist and Nobel laureate, was acquitted of tax evasion yesterday.Ressa is an outspoken critic of both Rodrigo Duterte, the former president, and current President Ferdinand Marcos Jr. Her uphill battle to keep publishing her news site, Rappler, has become emblematic of the Philippines’ declining press freedoms.This recent case was the first high-profile test of whether her legal troubles would continue under Marcos; other cases are pending. The new president has benefited from online disinformation and tried to play down the brutality of his father’s dictatorship decades ago, but has declined to attack the country’s mainstream media, as Duterte did.Background: Philippine authorities began hounding Ressa under Duterte. Rappler aggressively covered his bloody campaign against drugs and drug traffickers, which helped Ressa win the Nobel Peace Prize in 2021.THE LATEST NEWSAsia PacificRafael Nadal, who has won 22 Grand Slams, lost in the second round.Martin Keep/Agence France-Presse — Getty ImagesRafael Nadal, the top seed, is out of the Australian Open. He lost yesterday after he injured his hip.After speculation that it would pivot, Bloomberg reports that the Bank of Japan maintained its policy of aggressive sovereign bond purchases and negative interest rates. DealBook has an explainer.A Qantas flight traveling from New Zealand to Australia landed safely yesterday after a midflight engine failure, The Guardian reports.Around the WorldAryeh Deri, left, is a close ally of Prime Minister Benjamin Netanyahu. The court ruled that Deri should be removed from his posts.Pool photo by Ronen ZvulunIsrael’s Supreme Court blocked the ministerial appointment of a politician who was convicted of tax fraud, as a fight over the judiciary intensifies.The U.S. could soon default on its debt. That would be an outright catastrophe, analysts say.Nemat Shafik, who runs the London School of Economics, will be the first woman to lead Columbia University.Microsoft plans to lay off 10,000 people, its largest cut in roughly eight years.A Morning ReadMeera Shankar, center, rents rooms to women, with no curfew or visiting rules.Saumya Khandelwal for The New York TimesIf women were represented in India’s formal work force at the same rate as men, some estimates suggest, the country’s economy could expand by an additional 60 percent by 2025.But housing is a major obstacle. Many single women pay more, for a narrower selection of apartments, and brokers often make them promise to never bring men over, drink or live alone.Lives lived: Sister André, the world’s oldest known person, died at 118. The French nun lived through two world wars, survived Covid and was said to enjoy a daily dose of wine and chocolate.ARTS AND IDEASUrban Hawker is unlike any other food court in Midtown Manhattan.Rachel Vanni for The New York TimesSingapore’s eats, in New YorkA vivid bazaar of Singaporean dishes has opened in the heart of Midtown Manhattan, adapted from a grand concept by Anthony Bourdain. Urban Hawker, the food hall, puts cooks front and center: Most of the 17 vendors relocated from Asia to New York to work there.One standout is Hainanese chicken rice, perhaps the country’s most recognized dish. Pete Wells, our New York restaurant critic, says it’s “fleshier, softer, more voluptuous than you’d think boiled poultry could be.” Other stalls prepare dishes that started out somewhere else but have adapted to or been adopted by Singaporeans, like biryanis and Malaysian coconut stew.“You get an overview of Singaporean food unlike any you’ll find in a restaurant,” Pete writes, adding, “The stalls preserve and spotlight the separate origins of the dishes.”Check out Pete’s review, which has more mouthwatering photos than we can fit in the newsletter. And here is a recipe for Hainanese chicken with rice.PLAY, WATCH, EATWhat to CookLinda Xiao for The New York TimesWonton soup comes together in 10 minutes.What to ReadA new, unabridged volume of Franz Kafka’s diaries, which he ordered a friend to burn, offers revelation upon revelation.What to Watch“Beautiful Beings” is a brutal Icelandic drama about boyhood and bullying.ExerciseHere are tips to become a morning exercise person.Now Time to PlayPlay the Mini Crossword, and a clue: Superstitiously curse (four letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. Wordle’s editor, Tracy Bennett, discussed “passionate” fans and how she picks words on The Today Show.“The Daily” looks at facial recognition software.We’d like your feedback! Please email thoughts and suggestions to briefing@nytimes.com. More

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      Your Friday Briefing: Men Flee Russian Conscription

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      Plus Japan props up the yen and Cambodia concludes its Khmer Rouge trials.A billboard in St. Petersburg promoting military service.Olga Maltseva/Agence France-Presse — Getty ImagesMen flee Russia, fearing draftOne day after President Vladimir Putin announced a plan to bring 300,000 civilians into military service, thousands of Russians received draft papers and boarded buses to training sites. Many others left the country in a rush, paying rising prices to catch flights to Armenia, Georgia, Montenegro and Turkey, some of the countries that allow Russians to enter without visas.Russian officials said the call-up would be limited to people with combat experience. But one journalist said her husband, a father of five with no military experience, had been summoned.Our reporter spoke to a 23-year-old who bought a plane ticket to Istanbul, wrapped up his business and kissed his crying mother goodbye — all within about 12 hours of Putin’s announcement. He said he has no idea when he will return. “I was sitting and thinking about what I could die for, and I didn’t see any reason to die for the country,” he said. Here are live updates.Reaction: The E.U. is scrambling to decide how to respond. Countries are weighing security concerns against their desire to help those fleeing an unjust war.Surveillance: The Times obtained nearly 160,000 files from Russia’s powerful internet regulator, which the government uses to find opponents and squash dissent. Compared with China, much of the work of Russian censors is done manually, but what Moscow lacks in sophistication, it has made up for in determination.The Japanese yen has been sliding against the U.S. dollar.Kim Kyung-Hoon/ReutersJapan props up the declining yenJapan announced yesterday that it had intervened to prop up the value of the yen for the first time in 24 years, in an effort to stop the currency’s continuing slide against the dollar.Yesterday, the yen passed 145 to the dollar after the U.S. Federal Reserve’s announcement on Wednesday that it would raise its policy rate by an additional three-quarters of a percentage point. The yen has lost over 20 percent of its value against the dollar over the past year, and it has been the worst performing currency among major developed economies this year.Context: The yen’s plunge has largely been caused by Japan’s determination to keep interest rates low. The government’s intervention followed an announcement by the Bank of Japan that it would stick fast to its longstanding ultralow interest rate policy — even as most other countries have begun to follow the U.S. Federal Reserve’s increases.Explore the World of the ‘Lord of the Rings’The literary universe built by J.R.R. Tolkien, now adapted into a new series for Amazon Prime Video, has inspired generations of readers and viewers.Artist and Scholar: Tolkien did more than write books. He invented an alternate reality, complete with its own geography, languages and history.Being Frodo: The actor Elijah Wood explains why he’ll never be upset at being associated with the “Lord of the Rings” movie series. A Soviet Take: A 1991 production based on Tolkien’s novels, recently digitized by a Russian broadcaster, is a time capsule of a bygone era. From the Archives: Read what W.H. Auden wrote about “The Fellowship of the Ring,” the first volume of Tolkien’s trilogy, in 1954.History: For years, a weak yen was widely seen as a boon for its export-driven economy, making Japanese products cheaper and more attractive for consumers abroad.Elsewhere: The Bank of England raised its key interest rate by half a point to 2.25 percent yesterday, the highest level since 2008. It is the latest effort to tame high inflation.Khieu Samphan, 91, is the last surviving Khmer Rouge leader. Nhet Sok Heng/Extraordinary Chambers in the Courts of Cambodia, via Associated PressProsecuting the Khmer RougeFor more than 15 years, a court in a military camp in Cambodia has been working to prosecute the crimes of the Khmer Rouge regime, which caused the deaths of an estimated 1.7 million Cambodians in the late 1970s.In its final hearing yesterday, it rejected an appeal by Khieu Samphan, 91, the fanatical communist movement’s last surviving leader, upholding his conviction and life sentence for genocide and other crimes.Many victims think the United Nations-backed tribunal, which spent over $330 million, was a hollow exercise conducted far too long after the atrocities were committed. Only three people were convicted, and many of the Khmer Rouge’s senior figures — including its notorious top leader, Pol Pot — were long dead by the time the court was created.Background: From 1975 to 1979, the Khmer Rouge caused the deaths of nearly a quarter of the population from execution, torture, starvation and untreated disease as it sought to abolish modernity and create an agrarian utopia.THE LATEST NEWSAsia PacificKim Jong-un, North Korea’s leader, with Vladimir Putin, Russia’s president, in 2019.Pool photo by Alexander ZemlianichenkoNorth Korea denied a U.S. intelligence report that it was selling millions of artillery shells and rockets ​to Russia, accusing the U.S. of spreading a “reckless” rumor.The Malaysian businessman known as Fat Leonard, who was at the center of a U.S. Navy bribery scandal, was recaptured after he escaped house arrest two weeks ago.Tonga’s enormous underwater volcano that erupted in January may have caused a short-term spike in global warming, scientists said.Yoon Suk Yeol, the South Korean president, was caught on a hot mic calling U.S. lawmakers “idiots,” The Washington Post reports.Around the WorldDavid Malpass, the president of the World Bank, refused to acknowledge human-caused global warming earlier this week. Yesterday, he said he accepted the overwhelming scientific conclusion.A U.S. federal appeals court allowed the Justice Department to resume using sensitive documents seized from Donald Trump in its investigation.U.S. veterans are pushing Congress to grant Afghan evacuees a pass to residency, but some Republicans argue they pose security risks.A deadly cholera outbreak is spreading in Syria, where millions of people, displaced by civil war, lack clean water and health care.What Else Is HappeningCameron Smith/Getty Images for Laver CupRoger Federer will play the last competitive match of his career today in London.For the first time, Catholics outnumber Protestants in Northern Island, a striking demographic shift that could eventually fuel calls to reunite Ireland.The U.S. Senate ratified an international treaty to phase out hydrofluorocarbons, the planet-warming chemicals found in refrigerators and air-conditioners.The U.S. is on track to break its record for guns intercepted at airport checkpoints in one year. So far 4,600 have been discovered, and nearly 90 percent are loaded.A Morning ReadMohammed Zubair, second from the right, is a founder of Alt News. He was jailed this summer over a complaint from an anonymous Twitter user.Atul Loke for The New York TimesFake news is rising in India, with a surge of disinformation after the rise of Narendra Modi, the Hindu nationalist prime minister. Alt News, an independent website, has emerged as a leading debunker of misinformation, such as stories about child-kidnapping gangs and Muslims spreading Covid.But highlighting hate speech against minority groups has put it on a collision course with Modi’s government: A founder was recently arrested and is accused of spreading communal unrest.ARTS AND IDEASTolkien, for Italy’s right wing?Italy’s national election is on Sunday. Giorgia Meloni, the hard-right politician who is the front-runner to become the country’s next prime minister, has a surprising personal manifesto.Meloni loves “The Lord of the Rings” and sees the fantasy adventure series, written by J.R.R. Tolkien, as something of a sacred text. As a youth activist in the post-Fascist Italian Social Movement, she used to dress up as a hobbit.That might seem like a youthful infatuation. But in Italy, “The Lord of the Rings” has informed generations of post-Fascist youth. They have looked to Tolkien’s traditionalist mythic age for symbols, heroes and creation myths free of Fascist taboos, from which they could reconstruct a hard-right identity.Meloni, 45, said that she had learned from dwarves, elves and hobbits the “value of specificity” with “each indispensable for the fact of being particular.” She extrapolated that as a lesson about protecting Europe’s sovereign nations and unique identities.“I think that Tolkien could say better than us what conservatives believe in,” Meloni said. “I don’t consider ‘The Lord of the Rings’ fantasy.”PLAY, WATCH, EATWhat to CookKelly Marshall for The New York TimesThis roasted mushroom and halloumi grain bowl is warm and adaptable.What to Read“Getting Lost,” a series of diary entries by the French writer Annie Ernaux, recounts an all-consuming romance with a younger man.DrinkThe appletini is back, and it’s ushering in a new martini era.Now Time to PlayPlay today’s Mini Crossword, and a clue: Even the slightest bit (five letters).Here are today’s Wordle and today’s Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. Phil Pan is our next International editor. He was the first Asia editor of The Times based in Hong Kong and previously served as our Beijing bureau chief. The latest episode of “The Daily” is on Vladimir Putin’s escalation of the war.You can reach Amelia and the team at briefing@nytimes.com. More