Japanese stocks soared to record highs as bonds weakened and the yen hit an all-time low against the Swiss franc after Prime Minister Sanae Takaichi secured a decisive victory in Sunday’s snap election.
Takaichi’s Liberal Democratic Party (LDP) captured 316 of the 465 seats in the lower house of parliament, granting her the mandate to advance her ambitious spending plans and tax relief initiatives without needing to negotiate with opposition parties. The LDP’s supermajority also enables the government to pass legislation without requiring approval from the upper house.
The Nikkei 225 surged 5.7% to an unprecedented 57,337.07 by 0146 GMT, with 197 of its 225 components gaining. The broader Topix index climbed 3.4% to a record-breaking 3,825.67, reflecting widespread market optimism over the election results.
