Mumbai, Jan. 21 -- Japan's bond markets surged to new highs due to rising expectations of fiscal stimulus under the country's new political leadership and shifting global market dynamics triggered by tariff policies of US President Donald Trump, banking and market expert Ajay Bagga said in an exclusive conversation with ANI.

Detailing the reasons behind the sharp rise in Japanese bond yields, Bagga said markets are reacting to major political changes in Japan. The new Prime Minister, who is seen as a protege of former Prime Minister Shinzo Abe, is expected to pursue a strong foreign policy, higher defence spending, a firm stance against China, and fiscal stimulus to lift economic growth.

"So what the markets are seeing is that the fisca...