Japanese Stocks Soar After Prime Minister Sanae Takaichi’s Historic Election Victory
Japanese stocks surged to record highs on Monday as markets reacted to Prime Minister Sanae Takaichi’s decisive election win.
Takaichi’s Liberal Democratic Party (LDP) captured 316 of 465 seats in Sunday’s lower house election—the first time a single party has secured a two-thirds majority since Japan’s postwar parliament was established in 1947.
With its coalition partner, the Japan Innovation Party, winning an additional 36 seats, the government now commands a combined 352-seat supermajority, giving Takaichi the leverage to push forward her pro-business agenda without extensive opposition negotiation.
The Nikkei 225 index jumped more than 5% in early trading, briefly surpassing 57,000 points for the first time, as investors welcomed the stability and clear mandate.
Speaking after the results, Takaichi pledged to pursue a “responsible yet aggressive” fiscal policy, maintain her recently formed Cabinet, and focus on economic revival, cost-of-living challenges, and boosting consumer confidence.
Market analysts say her anticipated stimulus measures, tax reforms, and deregulation policies could provide additional momentum to Japan’s stock market. “The election outcome and upcoming pro-growth policies will be additional fuel for an existing bull trend,” said investment analyst Yuka Marosek.
The snap election, called just months after Takaichi became Japan’s first female prime minister in October 2025, marked a sharp contrast with her predecessors, who lost parliamentary majorities, faced corruption scandals, and struggled with economic stagnation.
Takaichi’s campaign also appealed to younger voters, leveraging popular cultural symbols like handbags and pink pens, while consolidating support among traditional conservatives by emphasizing constitutional revision and long-held national values.
Her international profile is rising as well: US President Donald Trump congratulated Takaichi on Truth Social, calling it an “honor” to endorse her and pledging continued support. Takaichi is expected to meet Trump again in Washington in March 2026.
While investors celebrate, critics warn that her ambitious spending plans could strain Japan’s already high government debt, raising questions about long-term economic stability.
Takaichi, however, remains focused on delivering her campaign pledges and revitalizing the Japanese economy, emphasizing her responsibility to the electorate.
