LDP president Prime Minister Sanae Takaichi speaks to reporters on the afternoon of February 8 at party headquarters in Nagatacho, Tokyo. (©Sankei by Naoki Aikawa)
Tokyo stocks surged on February 9, with the Nikkei 225 breaking above 57,000 for the first time and notching a fresh intraday record. The rally followed the ruling bloc's landslide win in the February 8 Lower House election. Investors bought broadly on expectations that Prime Minister Sanae Takaichi's government, and its pledge of "responsible and proactive fiscal policy," will remain in place for the long haul.
More to Come?
In the vote, Takaichi had framed a simple benchmark for success: retaining a ruling-bloc majority of 233 seats. The Liberal Democratic Party itself cleared that goal, comfortably, winning 316 votes. With its coalition partner, Ishin no Kai, the coalition secured 352 seats in the Lower House, a result that investors read as an endorsement of Takaichi's fiscal policy. Traders dubbed the ensuing rally the "Takaichi trade," betting that looser fiscal settings and policy continuity will support growth.
Some market participants argue that 57,000 is only a stop on the way higher. They expect the Nikkei to test further gains in the sessions ahead.
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Author: The Sankei Shimbun
