# Can Japan avoid market shock as PM launches massive spending spree?

Japan's new prime minister is planning a large fiscal stimulus, raising concerns about a potential bond market crisis similar to the UK's Liz Truss era. Unlike Britain, Japan has high domestic savings and a central bank that controls bond yields, but global investors are watching closely. A misstep could trigger volatility in the world's third-largest economy, affecting global markets.

**Importance:** 3/5

## Sources

### Business
- [The Guardian Biz](https://www.theguardian.com/world/2026/jul/25/japan-sanae-takaichi-investment-plan-liz-truss-economy) — Sat, 25 Jul 2026 12:00:41 GMT