Japanese stocks surged to record highs on Monday as markets reacted positively to Prime Minister Sanae Takaichi’s sweeping election victory, which handed her Liberal Democratic Party (LDP) an unprecedented mandate to govern, according to BBC News.
The benchmark Nikkei index rose by more than 5% in early trading, briefly crossing the 57,000 mark for the first time in history, reflecting strong investor confidence in Japan’s political stability and pro-business outlook.
In Sunday’s general election, the LDP secured 316 of the 465 seats in the lower house of parliament, the first time since 1947 that a single party has won a two-thirds majority. Together with its coalition partner, the Japan Innovation Party, the ruling bloc now controls 352 seats, significantly strengthening Takaichi’s grip on power.
The decisive victory gives Japan’s first female prime minister wide room to advance economic reforms without heavy resistance from opposition parties. Takaichi has pledged a “responsible yet aggressive” fiscal policy, including stimulus spending, tax cuts, and deregulation aimed at reviving Japan’s slowing economy.
Market analysts say the election result has reinforced an already strong bullish trend in Japanese equities, as investors bet on policy stability and business-friendly reforms, despite ongoing concerns over rising living costs, an ageing population,n and high government debt.
Takaichi’s gamble to call a snap election just months after taking office has paid off, restoring confidence in the LDP after years of declining popularity and setting a new political tone for Japan’s economic future.
