ABC News – Nikkei 225 Surge Following PM Takaichi’s Ruling Party Supermajority Victory in Tokyo Election

Tokyo’s Nikkei 225 index rose 4.7% on Monday after Japanese Prime Minister Sanae Takaichi’s party secured a two-thirds supermajority in the parliamentary election. This political outcome suggests a continuation of market-friendly policies that analysts expect will bolster economic growth.

Takaichi expressed her commitment to pursuing strategies aimed at strengthening Japan’s economic position during an interview with public broadcaster NHK. This optimism contributed to a broader rally in Asian markets, with South Korea’s Kospi seeing a 4.3% increase and other indices gaining more than 1%.

The surge in Asian markets followed a substantial rebound in the U.S. stock market, where technology stocks recovered significantly. The S&P 500 experienced a 2% rise, marking its best day since May, while the Dow Jones Industrial Average climbed 1,206 points, reaching above the 50,000 level for the first time.

The combination of strong performance in tech shares and favorable political developments in Japan has created a positive sentiment across global markets. Investors remain hopeful about long-term growth prospects as governmental policies align with market-friendly initiatives.