Mon, 06 Oct 2025

Mon, 06 Oct 2025 Japan stocks hit record after ruling party names pro-business leader

The benchmark Nikkei 225 index jumped above 47,000 for the first time as investors welcomed Sanae Takaichi's victory.
- Japanese stocks have reached a record high after the Liberal Democratic Party (LDP) chose Sanae Takaichi as its new leader, positioning her as Japan's next prime minister. - The Nikkei 225 index increased by approximately 4.5% on Monday afternoon in Tokyo, exceeding 47,000 for the first time. - Sanae Takaichi, a pro-business politician with experience as minister for economic security and internal affairs, is known for supporting higher government spending and lower borrowing costs. - The yen hit a record low against the euro and decreased by 1.7% against the US dollar on Monday. - Investors welcomed Takaichi's leadership announcement, causing shares to rise in real estate, technology, and heavy industry companies. - Experts believe the market response was largely a "knee-jerk reaction" to the potential appointment of Takaichi as prime minister. - Her policy proposals may weaken the yen further as Japan's debt rises, according to economists. - If confirmed later this month, Sanae Takaichi will become Japan's first female prime minister and have to navigate challenging economic and diplomatic issues, including a sluggish economy and a difficult US-Japan relationship.
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