Japanese equities surged to unprecedented heights on Monday as the Nikkei 225 broke the 57,000-point barrier for the first time, fueled by Prime Minister Sanae Takaichi’s landslide election victory and a high-profile endorsement from President Donald Trump.
Market Euphoria And The ‘Takaichi Trade’
The benchmark Nikkei 225 rallied 4.27% to close at 56,568.24, after earlier touching an all-time intraday high of 57,337.07.
The rally follows Sunday’s snap election, where Takaichi’s Liberal Democratic Party (LDP) secured 316 seats in the 465-member Lower House.
Alongside coalition partner Japan Innovation Party, the bloc now controls 352 seats—a two-thirds supermajority that grants Takaichi a mandate to pursue aggressive “Sanaenomics” reflationary policies and increased defense spending.
Trump Endorsement And Strategic Ties
The market’s momentum was further bolstered by public support from Washington. Following the results, Trump congratulated Takaichi on social media, writing: “She is a highly respected and very popular leader. Sanae’s bold and wise decision to call for an election paid off big time.”
Trump, who had previously offered a “complete and total endorsement” …Full story available on Benzinga.com
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