Takaichi’s victory sends Japan’s Nikkei 225 to new highs
Japanese Prime Minister Sanae Takaichi, leader of the ruling Liberal Democratic Party (LDP), speaks to the media at LDP headquarters on general election day in Tokyo, Japan, February 8, 2026.
Kim Kyung-Hoon | Anatolia | Getty Images
In Japan, Sanae Takaichi and her ruling Liberal Democratic Party won an overwhelming mandate in Sunday’s election, securing a supermajority — meaning the LDP has two-thirds or more seats in the Lower House — and returning her as the country’s prime minister.
The result gives Takaichi wide leeway to pursue his agenda, which includes increasing spending and suspending some food-related taxes. Japanese stocks climbed to record highs on Monday yen It strengthened to 156.88 per dollar, reflecting renewed investor confidence following the election results.
This optimism comes after technology stocks experienced a sharp rebound in U.S. markets on Friday. Nvidia, broadcomAnd Seer led the charge.
“We are experiencing an AI gold rush right now,” said Gabriel Shahin, founder of Falcon Wealth Planning. “There’s money to be deployed… It’s just a merry-go-round [of money movement] Sometimes it scares people.”
This rally caused important indicators to rise. Dow Jones Industrial Average It closed above the 50,000 level for the first time with an increase of 2.47%. S&P 500 After diving into negative territory after Thursday’s close, it turned green again in 2026, rising by 1.97%. Nasdaq Composite increased to 2.18 percent.
Italian bank in Europe UniCredit published best annual net profit ever 10.6 billion euros ($12.6 billion) in 2025 with the help of its shares commerzbank And Alpha Bank. The lender also raised its revenue and profit forecasts this year. Learn more as CEO Andrea Orcel discusses the bank’s earnings on “Squawk Box Europe.”
Meanwhile, political pressure on British Prime Minister Keir Starmer continued to increase. Chief of staff Morgan McSweeney resigned on Sunday to take responsibility for advising Starmer on appointing Peter Mandelson as US ambassador, despite Mandelson’s past ties to sex offender Jeffrey Epstein.
As Starmer’s public approval declines, some members of the Labor Party are openly questioning his political future; This is a far cry from the unifying force that Japan’s Takaichi showed on Sunday.
What you need to know today
Big Tech’s valuation has lost more than $1 trillion Collectively last week, according to FactSet data. The declines were effective Amazon, Microsoftnvidia, Meta, Google and Oracle. Amazon alone lost over $300 billion in market value.
Silicon Valley’s biggest names He was found in files related to sex offender Jeffrey Epstein, which were recently disclosed by the US Department of Justice. In addition to Elon Musk and Bill Gates, the names include Google co-founder Sergey Brin, venture capitalist Peter Thiel and LinkedIn co-founder Reid Hoffman.
Jimmy Lai sentenced to 20 years in prison Monday in one of the most important investigations under China’s imposed national security law. The media mogul, who founded the pro-democracy newspaper Apple Daily, was convicted in December of colluding with foreign powers, among other charges.
The Dow closed above the 50,000 level for the first time. Major US indexes rose on Friday as technology stocks rebounded. Asia-Pacific markets were broadly higher on Monday. of japan Nikkei 225 In previous transactions, it passed the 57,000 level, a first for the index. Chinese chip designer Montage Technology rose nearly 60% in its debut on the Hong Kong stock exchange.
[PRO] Tech giants were sold in China last week. But analysts said the reasons behind the moves differed from those in the United States.
And finally…
Private credit concerns re-emerge in $3 trillion market as AI puts pressure on software companies
Private credit markets face new uncertainties as AI-powered tools begin to pressure software companies, a key borrower group for private lenders. Shares of asset managers with large private lending franchises tumbled last week as investors worried about how artificial intelligence could disrupt borrowers’ business models, pressurize cash flows and ultimately increase default risks.
These moves highlight a growing uneasiness in the private credit market. It must now prepare for the impact of AI-induced disruption on the software industry, which is heavily exposed to acquisitions financed by opaque, illiquid loans, market watchers say.
— Lee Ying Shan
