Japan's Nikkei hits record high and yen strengthens after Takaichi's election win business live

"The yen has strengthened after Japanese prime minister Sanae Takaichi won a sweeping victory in Sunday's election, ending a six-day run of losses. The Japanese stock market has rocketed to a new high too, as investors welcome the prospect of more stimulus. Takaichi's Liberal Democratic party (LDP) has won an absolute majority in Japan's lower house, and with her coalition partner, the Japan Innovation party, Takaichi now has a supermajority of two-thirds of seats."

"ING say the LDP's landslide victory in Japan is positive for risk assets, even though her policies could raise Japan's borrowing levels even higher: Prime minister Takaichi's decision to leverage her popularity for her party turned out to be successful. The landslide victory will reinforce her responsible but expansionary fiscal spending and a more Japan-focused foreign policy. Risk-on sentiment will dominate the market for now."

"Japan's Nikkei share average surged to a record high on Monday, after the election results, surpassing the 56,000 level for the first time at the start of trading. It quickly pushed through the 57,000 point mark, before closing up 3.9% at 56,363 points. Stock markets like extra fiscal stimulus. After Sanae Takaichi secured Japan's largest postwar election victory, Nikkei 225 surged over 5% at Monday's open. Equities had already outperformed in the four months since she took command of the L"

Sanae Takaichi's Liberal Democratic Party won an absolute majority in the lower house and, with the Japan Innovation party, secured a two-thirds supermajority. The electoral mandate clears the path for a 21tn yen stimulus package and a two-year suspension of the 8% sales tax on food. Financial markets reacted with relief: the yen strengthened and the Nikkei surged to record levels, including a rise above 56,000 and intra-session moves past 57,000. ING noted the result is positive for risk assets while warning that policies could raise Japan's borrowing further. The victory is expected to reinforce expansionary fiscal spending and a more Japan-focused foreign policy, sustaining risk-on sentiment.

Read at www.theguardian.com