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Japanese stocks surged to historic highs after Prime Minister Sanae Takaichi’s decisive election victory. Investors welcomed the political certainty, boosting confidence across Asian markets.
Nikkei 225 Surpasses 57,000
Tokyo’s benchmark Nikkei 225 rose more than five percent at one point on Monday, breaking the 57,000 mark for the first time. The rally reflected optimism over Takaichi’s strong mandate and potential fiscal stimulus. The yen also strengthened alongside the stock gains.
Takaichi’s Mandate Supports Fiscal Plans
The Liberal Democratic Party won roughly two-thirds of the lower house seats. This majority allows for major government spending and tax reforms to support economic growth.
Takaichi said, “We will prioritize the sustainability of fiscal policy. Public and private sectors must invest. We will build a strong and resilient economy.”
Analysts See Reduced Political Risk
Experts say the election results removed near-term political uncertainty.
Kyle Rodda of Capital.com noted that equities could benefit from higher fiscal spending and low interest rates. Charu Chanana of Saxo Markets said decisive election wins usually lift markets, though long-term debt concerns remain if spending rises too much.
Regional Markets Follow Tokyo
The optimism spread across Asia. Hong Kong, Shanghai, Sydney, Singapore, and Taipei all saw gains. Seoul climbed over four percent, driven by a six percent increase in Samsung shares after reports of mass production of HBM4 memory chips.
Wall Street Momentum Supports Rally
The rally was also backed by Wall Street’s strong finish last week. The Dow Jones Industrial Average surpassed 50,000 points, fueled by positive US economic data and expectations of potential interest rate cuts.
Commodities and Oil
Gold and silver steadied after recent swings. Oil prices fell slightly as tensions eased following nuclear talks between Iran and the US in Oman. Tehran described the discussions as a “step forward.”
