Shigeru Ishiba

Ishiba said the overall working size of the package would reach ¥39 trillion, honing in on a figure that usually relies on projected spending from the private sector.

The new funding framework will be sketched out in an upcoming economic stimulus package with an aim to generate an economic impact of about JPY160 trillion.

Ishiba is expected to attend an Asia-Pacific Economic Cooperation forum in Peru, then a G20 leaders’ summit in Brazil next week. Japanese officials are trying to arrange a meeting with Trump.

The yen fell to three-month low and futures pointed to a drop in Japanese stocks Monday after the Liberal Democratic Party and its coalition partner were dealt a heavy blow in a snap election.

Wage trends are among the most closely watched indicators as the government and Bank of Japan seek to achieve a positive cycle of rising salaries fuelling spending, spurring demand-led inflation.

“He doesn’t seem to have much knowledge of the economy, and he may be easily influenced by the opinions of those around him,” says one fund manager.

“Domestically oriented stocks, especially those benefit from regional revitalisation measures, will be preferred.”

Ishiba is the LDP’s consummate outsider, a dissident who has spent his career refusing to acquiesce to orthodoxy.