Japan Stocks Surge on Takaichi’s Landslide Election Win

Japanese stocks rallied Monday after Prime Minister Sanae Takaichi’s landslide election victory, a result seen as endorsing her expansionary fiscal agenda. The benchmark Nikkei 225 jumped 5 percent in early trading, while the broader Topix climbed by around 3 percent.

Markets had largely been positioned for a Liberal Democratic Party win since Ms. Takaichi’s surprise decision in January to call an election, and the rally suggested investors viewed the outcome as a significant mandate to accelerate her economic plans. Ms. Takaichi is broadly viewed as a boon for corporate Japan because of her backing of low interest rates and robust fiscal spending.

Last year she pushed through a record supplementary budget and has advanced large state-led investments in strategic sectors such as artificial intelligence and semiconductor manufacturing.

Japan

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