Japanese Stocks Reach Record High Following Sanae Takagi's Election Victory
The Nikkei 225 index surged to a record high of 56,083.14 points, reflecting a 3.4% increase at the start of trading today, following Prime Minister Sanae Takagi's significant victory in the parliamentary elections on Sunday, which grants her a strong mandate to revitalize the economy.
The broader Topix index rose by 2.5% to 3,792.05 points, with shares of Ozora Bank leading the gainers with a 2.7% increase, followed by Tokyo Gas and JFE Holdings.
Japanese markets have experienced unprecedented activity since Takagi took office as Japan's first female Prime Minister last October, as her new economic policies have propelled domestic stocks to record highs while triggering a significant sell-off in government bonds and the yen.
In the foreign exchange market, the Japanese yen fell against the dollar to 157.95, marking its weakest level in two weeks, before stabilizing later at 157.1, nearly matching Friday's closing rate. This decline is part of a sustained downward trend for the yen since July 2024, despite some recovery driven by speculation regarding potential official interventions to support the weak currency.
Takagi's historic victory provides her with the opportunity to advance comprehensive economic reforms aimed at fostering growth and supporting local businesses, a move that experts describe as potentially transformative for the foundations of Japan's traditional economy and a shift towards a new direction.
