Japan’s Nikkei jumps 5%, hits new high after Takaichi election win

2026-02-09 - 01:36

The Nikkei 225 briefly jumped over 5% before settling 4.9% higher at 56,919 points, marking the first time it has climbed above 56,000. (AFP pic) TOKYO: Japan’s benchmark stock index soared more than 5% today on the back of Prime Minister Sanae Takaichi’s election triumph, with her ruling coalition projected to have won a two-thirds majority in the powerful lower house. The Nikkei 225 briefly jumped over 5% before settling up 4.9% at 56,919 points, as of around 12.30am — the first time it has climbed above 56,000. Takaichi’s resounding victory paves the way for increased fiscal stimulus and a massive tax cut. Despite concerns over the fiscal cost of these measures, the yen strengthened, gaining 0.33% to 156.72 yen to the dollar after dipping in early trading. Takaichi vowed Sunday to pursue a “responsive and proactive” fiscal policy. “We will prioritise the sustainability of fiscal policy. We will ensure necessary investments. “Public and private sectors must invest. We will build a strong and resilient economy,” she said. Analyst Kyle Rodda of Capital.com said the ruling Liberal Democratic Party’s victory had handed Takaichi “the mandate she was looking for for her big-spending agenda”. Equities are “poised to benefit from higher fiscal spending but interest rates that remain accommodative and negative in real terms”, he said.