Japanese equities experienced a significant surge, with the Nikkei 225 Index closing at a record high following a decisive election victory for the ruling Liberal Democratic Party. The positive sentiment was further boosted by gains on Wall Street, particularly in the technology sector.
- The Nikkei 225 Index rallied 3.89% to close at 56,364.
- The broader Topix Index gained 2.29% to 3,784.
- The ruling Liberal Democratic Party secured a two-thirds supermajority in the lower house.
- The election outcome reinforced expectations for looser fiscal policy and possible tax cuts.
- Strong performers included Advantest (11.5%), Kawasaki Kisen (15.7%), SoftBank Group (6.3%), Fast Retailing (6.9%) and Hitachi (8.4%).
The strong performance of the Nikkei reflects increased investor confidence fueled by political stability and anticipated economic stimulus. The market is reacting favorably to the prospect of looser fiscal policy and potential tax cuts, coupled with positive momentum from global markets. Gains in heavyweight stocks indicate broad-based optimism across various sectors.