Japan’s Nikkei 225 skyrockets over 5% to hit record highs as Takaichi secures historic mandate
A bird’s-eye view of central Tokyo, including Tokyo Tower, at sunrise time.
Vladimir Zakharov | An | Getty Images
Japanese stocks jumped to a record high on Monday, leading gains in the region after Japanese Prime Minister Sanae Takaichi won a historic election victory.
The ruling Liberal Democratic Party won a two-thirds majority in the 465-seat lower house, public broadcaster NHK reported.
“A decisive win for Takaichi could be the best outcome for markets in the medium term, as strategic investment and tax reform support equities,” said Sree Kochugovindan, senior research economist at Aberdeen Investments.
of japan Nikkei 225 While it exceeded 57,000 for the first time with an increase of over 5.6%, Topix rose over 3% and reached a record level again.
The Japanese yen strengthened to 156.88 against the dollar. The yield on 10-year Japanese government bonds rose about 4 basis points to 2.274%, while 20-year JGB yields rose about 3 basis points to 3.158%.
In a note following his victory, Crédit Agricole CIB reiterated that the Takaichi administration had gained stronger momentum towards a major shift towards proactive fiscal policy backed by a clear public mandate.
US President Donald Trump congratulated Takaichi on his victory in a TruthSocial post.
“He is a highly respected and much loved Leader. “Sanae’s brave and wise decision to call the election paid great dividends,” he wrote. “The wonderful people of Japan who voted with such enthusiasm will always have my strong support.”
The elections followed political turmoil last year, when the LDP lost its majority in the Upper House, and a Lower House defeat in 2024, leading to the resignation of then-Prime Minister Shigeru Ishiba in September.
Other Asian markets also traded higher; South Korean Kospi gained 4.15%, while small-cap Kosdaq gained 2.97%.
of Australia S&P/ASX 200 It rose 1.65% in early trading.
of hong kong Hang Seng Index Futures were at 27,053 compared to the index’s last close of 26,559.95.
US futures rose in early Asian trading.
Stocks rose in the US last Friday as tech names rebounded after several days of heavy selling in the sector and Bitcoin rebounded, causing the popular cryptocurrency to fall more than 50% from its peak in October last year.
The Dow Jones Industrial Average closed at 50,115.67, up 1,206.95 points, or 2.47%. Friday was the day the Dow index exceeded the 50,000 level for the first time. The S&P 500 index closed at 6,932.30 points with an increase of 1.97 percent, and the Nasdaq Composite index closed at 23,031.21 points with an increase of 2.18 percent. With these moves, the S&P 500 started to rise again in 2026.
Despite Friday’s rise, the S&P 500 fell 0.1% for the week, while the Nasdaq fell 1.8% for the week. The 30-stock Dow index has risen 2.5% since the start of the week, benefiting from a rotation into some economic cyclical stocks even as the broader market remains under pressure from a tech sell-off.
—CNBC’s Sean Conlon and Alex Harring contributed to this report.
