Japanese stock markets surged to unprecedented levels on Monday following Prime Minister Sanae Takaichi’s decisive election win, reflecting strong investor confidence in political stability and future economic policy direction. The benchmark Nikkei 225 index climbed sharply, breaking past the 57,000 mark for the first time and closing at record highs as markets reacted positively to the result.
Takaichi’s Liberal Democratic Party (LDP) secured a commanding majority in the Lower House, winning 316 of the 465 seats, and with its coalition partner, holds a supermajority of 352 seats. This historic mandate — the largest since Japan’s postwar parliamentary system was established — gives her government a clear path to implement its agenda, including expanded fiscal stimulus and proposed tax relief measures, which have been warmly received by investors.
The broader Topix index also reached new record levels, driven by optimism over increased government spending and targeted support for key sectors such as technology and defense. While some analysts remain cautious about long-term debt sustainability, the immediate market response has been overwhelmingly positive, with gains extending to other Asian markets as confidence spreads regionally.
The electoral outcome has removed much of the political uncertainty that had weighed on markets, allowing traders to focus on Japan’s economic prospects under a stable and assertive leadership.
