Post by : Bianca
Haleem
Tokyo’s Nikkei 225 surged as much as 5% on Monday, reaching a new all-time high, after Japan’s Prime Minister Sanae Takaichi secured a major election victory.
Japan’s public broadcaster NHK reported that Takaichi’s ruling Liberal Democratic Party (LDP) won 316 seats in the 465-seat lower house, comfortably crossing the 261-seat majority mark. The result also gives the party a two-thirds supermajority, strengthening the government’s ability to pass key decisions without major political resistance.
Market experts said the strong result removed uncertainty and gave investors confidence.
Neil Newman, managing director and head of strategy at Astris Advisory Japan, said the LDP moved from being a weak government to a powerful one that can now “call the shots” in policymaking.
Stephen Innes of SPI Asset Management also said markets usually welcome such outcomes because they reduce political ambiguity and give the prime minister more freedom to act.
Nikkei crosses 57,000 for first time
By mid-afternoon, the Nikkei 225 was up 4.6% at 56,729.51, after briefly topping 57,000 for the first time.
The election win is being seen as support for market-friendly policies, though analysts warned the effect on Japan’s yen and bond markets may not be equally positive.
The U.S. dollar weakened slightly against the Japanese yen, trading at 156.62 yen, down from 157.10 yen late Friday.
Asia markets rise strongly
Other Asian stock markets also gained sharply:
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South Korea’s Kospi surged 4.2% to 5,301.36
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Hong Kong’s Hang Seng rose 1.7% to 27,007.81
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Shanghai Composite gained 1.3% to 4,117.57
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Taiwan’s Taiex climbed 2%
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Australia’s S&P/ASX 200 jumped 1.9% to 8,870.10
Wall Street futures edge higher
U.S. futures were slightly higher early Monday. Contracts for the S&P 500 and the Dow Jones were both up 0.1%.
The positive mood followed a strong rally on Friday in U.S. markets, led by technology stocks.
Chipmakers helped fuel the rebound, with Nvidia up 7.8% and Broadcom rising 7.1%.
Bitcoin and commodities update
Bitcoin rose 2.2%, recovering above $70,000 after falling near $60,000 late last week.
In commodities:
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Gold rose 1.8% to $4,979.80 per ounce
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Silver added 0.2%
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U.S. crude oil fell 68 cents to $62.87 per barrel
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Brent crude dropped 71 cents to $67.34 per barrel
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The euro rose to $1.1851 from $1.1814
What’s next for Takaichi
Takaichi’s first major task when parliament reconvenes in mid-February will be passing a delayed budget bill, which includes measures aimed at tackling rising living costs and weak wage growth.
English
