Following the historic victory of the Liberal Democratic Party in the House of Representatives election, the Tokyo stock market saw the Nikkei Index soar, with gains exceeding 3,000 points on the 9th, reaching new heights above 57,000. This surge reflects investor confidence in the possibility of a long-term administration under Prime Minister Takagi, despite facing challenges such as a weakening yen and rising prices. Economic analysts interpret this spike as an indication of optimism regarding the government's ability to stabilize the economy over the long haul.

Economist Hideaki Kumano from Dai-ichi Life Research Institute highlights the election results as revealing the strength of the ruling party and the weakness of the moderate reform coalition. While the moderates attempted to leverage consumption tax cuts to compete with Takagi's popularity, they failed to create a significant policy debate. Takagi's assertion that discussions on consumption tax cuts will accelerate through a national forum has effectively neutralized the moderates' strategies and solidified her position in the political landscape following the significant electoral defeat faced by the coalition led by Yoshihiko Noda.

The stock market's positive response is viewed as a clear signal that investors are betting on the longevity of Takagi's administration and the consequent stability this would bring to economic policy. This confidence is essential for the business community as it suggests that without a long-term government, the implementation of comprehensive policies would be more challenging. Investors are hopeful that the Takagi administration will prioritize active fiscal measures, regulatory reforms, and bold growth strategies similar to those seen during Shinzo Abe's long-term governance, which benefited the economy significantly.