Mon, 09 Feb 2026

Mon, 09 Feb 2026 Japanese stocks surge as Takaichi secures historic election victory

Prime Minister Sanae Takaichi's Liberal Democratic Party secured 316 out of 465 seats in Sunday's election.

* Japanese stocks surged to a record high on Monday, with the Nikkei 225 index rising by over 5% to close at 56,363.94.
* Prime Minister Sanae Takaichi's Liberal Democratic Party (LDP) won 316 out of 465 seats in Sunday's election, securing a two-thirds lower house majority for the first time since Japan's parliament was established in its current form in 1947.
* The LDP's coalition partner, the Japan Innovation Party, won an additional 36 seats, bringing their combined total to 352.
* Takaichi plans to pursue a "responsible yet aggressive" fiscal policy and has pledged to cut taxes and boost the economy through spending.
* Investors are optimistic about the impact of Takaichi's policies on the Japanese economy, but have concerns about how she will finance her plans given Japan's high government debt.
* The election outcome is seen as a vote of confidence in Takaichi's leadership and a sign that investors believe her pro-business policies will boost the economy.
* However, critics warn that Takaichi's policies could deepen instability in Japan's already fragile economy and exacerbate rising costs of living.
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