Global markets today: Japan's Nikkei surges 5% to hit record high on PM Takaichi's victory

Japanese shares surged to their highest levels since April following Prime Minister Sanae Takaichi’s landmark victory in Sunday’s election, raising hopes of increased government investment in major sectors.

The Nikkei 225 index soared up to 5.7%, reaching a new record of 57,337.07, while the broader Topix index climbed as much as 3.4% to a fresh peak. Gains were driven primarily by technology and machinery stocks, with several chip-equipment manufacturers jumping more than 10%.

The Japanese yen also gained, reaching 156.88 against the US dollar. Yields on 10-year Japanese government bonds climbed nearly 4 basis points to 2.274%, while 20-year JGB yields increased by about 3 basis points to 3.158%.

What's behind the rally?

Takaichi’s ruling coalition achieved a commanding majority in Sunday’s lower-house election, granting her a strong mandate to implement fiscal expansion measures.

These policies have already propelled Japanese stocks to record levels, with sectors targeted by her “strategic” spending—such as AI, semiconductors, quantum computing, and defence—leading Monday’s market gains.

According to experts, quoted as saying by Bloomberg, financial stocks are likely to outperform on the back of higher long-term bond yields, while food-related shares could gain from Takaichi’s election pledge to temporarily reduce the consumption tax on food.

Defence companies—Mitsubishi Heavy, Kawasaki Heavy Industries Ltd., and IHI Corp.—saw strong gains on Monday, with IHI rising up to 7.2%. Satellite operator Sky Perfect JSAT Holdings was one of the top performers on the Topix, and real estate and construction stocks, which are also expected to benefit from Takaichi’s policies, showed solid performance, the expert was quoted as saying.

U.S. President Donald Trump extended his congratulations to Takaichi on her win through a post on TruthSocial.

“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 wonderful people of Japan, who voted with such enthusiasm, will always have my strong support,” Trump said.

Asian markets today

Other Asian markets also rose on Monday, February 9, with South Korea’s Kospi surging 4.15% and the small-cap Kosdaq rising 2.97%.

Australia’s S&P/ASX 200 climbed 1.65% in early trading.

Meanwhile, Hong Kong’s Hang Seng Index futures stood at 27,053, up from the index’s previous close of 26,559.95.

US stock market today

On Friday, U.S. stocks rallied as technology shares bounced back after several days of heavy losses, and Bitcoin recovered following a drop of over 50% from its October peak last year.

The Dow Jones Industrial Average surged 1,206.95 points, or 2.47%, closing at 50,115.67, marking its first-ever close above 50,000. The S&P 500 rose 1.97% to finish at 6,932.30, while the Nasdaq Composite gained 2.18%, ending at 23,031.21. These gains pushed the S&P 500 back into positive territory for 2026.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.