The outcome may have long-term implications for Asia’s second-largest economy, given the policy differences between the two contenders. “I’m aiming to exploit temporary mispricings once the winner is decided,” said Hidematsu Take, chief executive at the leveraged fund in Tokyo. With Koizumi, it’s the same.”The Liberal Democratic Party leadership contest goes beyond party politics, with expectations that the winner will influence where interest rates are headed over the longer term. Many Bank of Japan watchers see a slower pace of hikes if Takaichi is chosen, given she’s an advocate of monetary easing. “It’s hard to trade the elections but it’s about adjusting for the unique nature of domestic Japanese politics,” he said.