Takaichi’s Liberal Democratic Party secured a commanding victory in Sunday’s snap election, capturing 316 of the 465 seats in the lower house of parliament
Asian equity markets climbed sharply on Monday, led by a surge in Japanese equities after Prime Minister Sanae Takaichi’s ruling Liberal Democratic Party secured an overwhelming victory in the lower house elections over the weekend.
The decisive result has rekindled investor optimism around fiscal stimulus, corporate earnings and broader risk appetite across the region.
Japan’s benchmark Nikkei 225 jumped over 5.7 per cent to an all-time high above 57,300, marking one of its strongest sessions in recent years. The broader Topix index also hit record levels.
Takaichi’s Liberal Democratic Party secured a commanding victory in Sunday’s snap election, capturing 316 of the 465 seats in the lower house of parliament.
Markets interpreted Takaichi’s landslide win as a mandate for an expansionary policy agenda that could include increased government spending, tax relief and investment incentives, especially in semiconductors, artificial intelligence and strategic industries.
The political clarity helped dissipate recent uncertainty that had weighed on regional sentiment.
Other major Asian bourses followed Japan’s lead. South Korea’s Kospi climbed more than 4 per cent, while benchmarks in Hong Kong, Shanghai and Sydney posted gains, buoyed by the broader risk-on mood and a rebound in US tech stocks late last week.
Sentiment was also lifted by significant rebounds in US chip stocks, which helped anchor confidence across technology sectors worldwide. Assets such as Bitcoin and gold extended recent momentum in risk markets, reflecting a shift toward growth-oriented positions after a period of volatility.
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