On Monday, Japanese stocks hit record levels, with the Nikkei 225 index breaking the 57,000-point barrier for the first time ever, as markets reacted enthusiastically to Prime Minister Sanae Takaiichi's decisive electoral win. The Nikkei 225 recorded an increase of up to 5.7%, reaching 57,337 points, while the broader Topix index also surged over 3%, marking significant gains across all of Asia. This sudden jump in stock prices represents the largest daily rally since April, showcasing the strong bullish sentiment in Japanese equities.

The government of Japan’s Liberal Democratic Party, led by Takaiichi, has secured a supermajority in the House of Representatives, achieving the biggest post-war victory for a political party in Japan, according to public broadcaster NHK. Takaiichi's party won 316 out of 465 seats, granting her the strongest political mandate that the country has seen in decades. This electoral success provides a clear signal of public support for her policies and governance.

In her post-election statements, Takaiichi expressed confidence in her administration’s ability to deliver on its political commitments, leveraging the electoral victory to cement her position and influence on both domestic and international fronts. The results are expected to lead to significant policy implications in areas such as economic reform and fiscal management, as investors look for stability and growth following this political shift in Japan.