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'Kishida shock' to stocks shows fear Japan will slide on reforms

Investors question new PM's desire to shake up state capitalism like Koizumi did

Another down day for the Nikkei Stock Average: The benchmark index has fallen for eight consecutive sessions through Oct. 6. (Photo by Tetsuya Kitayama)

TOKYO -- The Japanese stock market has suffered an eight-day losing streak unbroken by the election of a new prime minister, an event that typically produces a rally, in what some have dubbed the "Kishida shock."

The Nikkei Stock Average has retreated 6.8% since Fumio Kishida won the race to lead the ruling Liberal Democratic Party on Sept. 29. About 80% of the benchmark index's gains since August have been wiped out.

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