Japan Stocks Set to Drop, JGBs Face Volatility as Markets Reopen

Japanese markets are poised for a turbulent open after a three-day weekend following the collapse of the nation’s ruling coalition and another flare-up in US-China trade tensions.

Futures contracts for shares point to a selloff when trading resumes Tuesday. Japanese government bonds look vulnerable to more bearish sentiment, with a fluid political backdrop complicating the outlook for fiscal policy.