In Japan, a Takaichi election win elates both markets and Trump
Japan’s stock market surged to record highs on Monday after Prime Minister Sanae Takaichi’s Liberal Democratic Party (LDP) delivered a historic landslide victory, strengthening her grip on power and lifting investor confidence.
The LDP won 316 of the 465 seats in the lower house, its first two-thirds supermajority since the country’s postwar parliament was formed. Together with its coalition partner, the Japan Innovation Party, the bloc now controls 352 seats.
The scale of the win clears the way for Takaichi to push through legislation with minimal resistance, after she called a snap election just weeks into her premiership. It also allows her to override the upper house, which remains outside LDP control.
Market reaction was almost instantaneous.
Japan’s Nikkei index hit a fresh record, rising nearly 4% to close above 56,000 points, as investors welcomed the prospect of political stability and faster policy decisions.
The rally spread across Asia, with gains in South Korea, Hong Kong and Australia, underscoring the regional impact of Japan’s election outcome.
Takaichi has promised a ¥21 trillion ($134 billion) stimulus package and a two-year suspension of Japan’s food sales tax, measures aimed at easing cost-of-living pressures but which have raised concerns about funding.
The election result also drew praise from U.S. President Donald Trump, who congratulated Takaichi on what he called a “historic” victory and applauded her conservative leadership.
Trump said Japan’s voters had delivered a clear mandate, adding that he looked forward to working with Takaichi on security and economic issues.
“She is a highly respected and very popular Leader. Sanae’s bold and wise decision to call for an Election paid off big time,” the U.S. president wrote on Truth Social.
“Sanae: It was my Honor to Endorse you and your Coalition,” he added.
This story is written and edited by the Global South World team, you can contact us here.
