Japanese Stock Market Hits Record High Following Sanae Takaiichi's Election Victory

The Nikkei index surged to a record high of 56,083.14 points at the start of trading on Monday morning, marking a 3.4% increase following Prime Minister Sanae Takaiichi's overwhelming victory in the general elections held on Sunday. This win grants her a strong mandate to revitalize the economy.

The broader Topix index rose by 2.5%, reaching 3,792.05 points, with Ozora Bank leading the gains at 2.7%, followed by Tokyo Gas and JFE Holdings.

Japanese markets are experiencing unprecedented activity since Takaiichi became Japan's first female Prime Minister last October. Her new economic policies have driven local stocks to record levels while triggering a significant sell-off of government bonds and the yen.

In the currency market, the yen weakened against the dollar, trading at 157.95, its lowest level in two weeks, before stabilizing later at 157.1, roughly matching Friday's closing level. This decline is part of a continued downward trend for the yen since July 2024, despite some recovery driven by speculation about potential official intervention to support the weak currency.

Takaiichi's historic victory empowers her to advance broad economic reforms aimed at stimulating growth and supporting local businesses, a move that experts believe could significantly reshape Japan's traditional economy and set it on a new trajectory.