Japanese Stocks Hit Record High Following Takaichi's Election Win

The Japanese Nikkei Index reached an all-time high of 56,083.14 points at the start of trading on Monday, reflecting a 3.4% increase following Prime Minister Sanai Takaichi's significant electoral victory in the general elections held yesterday. This win provides her with a strong mandate to implement economic reforms.

The broader Topix Index also saw gains, rising 2.5% to 3,792.05 points, with Ozora Bank shares leading the way with a 2.7% increase, followed by Tokyo Gas and JFE Holdings.

Since Takaichi assumed office as Japan's first female Prime Minister last October, the markets have experienced remarkable activity. Her proposed economic policies have propelled local stocks to unprecedented levels, while prompting a notable sell-off in government bonds and a decline in the yen.

In the currency market, the Japanese yen depreciated against the dollar, reaching 157.95, its lowest point in two weeks, before stabilizing at 157.1, close to Friday's closing level. This decline continues a trend of yen weakness that began in July 2024, despite some recovery efforts linked to speculation of government intervention.

Takaichi's landmark victory positions her to pursue comprehensive economic reforms aimed at stimulating growth and supporting domestic businesses, a move experts suggest could significantly alter the traditional Japanese economic landscape.