Japan Markets Rally as Nikkei Hits Record on Takaichi Victory

Japan’s financial markets surged to historic highs after the Nikkei 225 index climbed past the 57,000 mark on Monday, posting a sharp 3.4% gain. The rally followed a decisive “supermajority” victory by Prime Minister Sanae Takaichi in Sunday’s general election, a result that investors widely interpreted as a strong mandate for aggressive economic stimulus and fiscal expansion.

According to Nikkei Asia, the election outcome has cleared the political runway for Takaichi’s expansionary agenda, centered on a massive $135 billion stimulus package. The plan focuses on large-scale infrastructure investment, tax cuts, and growth-oriented spending designed to reignite Japan’s long-stagnant economy. Market participants quickly priced in expectations of stronger domestic demand, higher corporate earnings, and renewed investor confidence in Japanese equities.

The so-called “Takaichi Trade” extended far beyond Tokyo, triggering a wave of optimism across global markets. Gold prices surged above the $5,000 per ounce level, reflecting both inflation hedging and risk-on sentiment, while bitcoin jumped to an intraday high of $72,000 before stabilizing above $70,000 during Asian trading hours. U.S. stock index futures also opened higher, signaling positive spillover into Western markets.

International political support added to the bullish momentum. U.S. President Donald Trump and Treasury Secretary Scott Bessent both issued public congratulations to Prime Minister Takaichi, reinforcing the perception of policy alignment between Tokyo and Washington. Trump further fueled market enthusiasm by reiterating his ambition to see the Dow Jones Industrial Average reach 100,000 by the end of his term. The Dow recently crossed the 50,000 threshold for the first time, marking a significant psychological milestone for U.S. equities.

With Japan’s election uncertainty now resolved and fiscal stimulus firmly on the table, investors are closely watching how Takaichi’s policies translate into real economic growth. For now, the combination of political clarity, expansionary fiscal policy, and global market optimism has propelled Japanese stocks and risk assets into a powerful new rally, reshaping expectations across equities, commodities, and cryptocurrencies worldwide.