Global Stock Market Today: ‘Iron Lady’ effect- Takaichi’s sweeping win sends Japanese stocks to record highs
The Japanese stock market kicked off a bullish session with what felt like a victory celebration. Investors rushed to buy equities after Prime Minister Sanae Takaichi’s election win, betting that higher government spending and growth-supportive policies would fuel economic momentum.
(Pic From: Wikipedia)
The Nikkei 225 surged 5.7%, breaking past all previous records to hit a new high of 57,337, while the Topix climbed 3.4% to reach its own record level. Wondering who led the charge? Technology and machinery stocks stole the spotlight. Japanese chip-equipment manufacturers jumped more than 10%, reflecting strong confidence in the country’s push into artificial intelligence, semiconductors, and advanced manufacturing. Bond yields moved higher, the yen stayed relatively stable, and risk appetite clearly returned.
With the Takaichi government now holding a strong mandate, markets are asking the key question: is this election rally just a short-term pop, or the start of Japan’s next long growth phase?
Yen Firms, Bond Yields Rise on Reflation Bets- In Global Stock Market Today
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Japanese yen strengthened to 156.88 per US dollar
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Bond yields climbed, signalling reflation expectations
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10-year JGB yield rose nearly 4 basis points to 2.274%
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20-year JGB yield increased about 3 basis points to 3.158%
Defence, Realty and Infrastructure Stocks Lead the Charge
| Sector | Key Stocks | Market Reaction | Reason for Gains |
|---|---|---|---|
| Defence | IHI Corp., Mitsubishi Heavy Industries, Kawasaki Heavy Industries | IHI up as much as 7.2%; others posted strong gains | Expectations of higher defence spending |
| Technology / Space | Sky Perfect JSAT Holdings | Among the top performers on the Topix | Boost from strategic tech and satellite-related focus |
| Real Estate | Realty and construction stocks (sector-wide) | Broad-based gains across the sector | Anticipation of increased public infrastructure spending |
| Infrastructure | Construction-linked companies | Steady advance | Fiscal expansion and government investment hopes |
What Triggered The Rally In Japan’s
Japan’s markets are experiencing two developments at once: celebrating an election victory and anticipating a shift in policy. Prime Minister Sanae Takaichi’s coalition secured a clear lower-house majority, giving her the mandate to roll out new fiscal spending programmes. Investors are positioning for increased government expenditure across sectors such as AI, semiconductors, quantum computing, defence, real estate, and infrastructure.
According To Experts in a Bloomberg report note that rising long-term bond yields could favour financial stocks, while Takaichi’s proposal to temporarily cut the food consumption tax may benefit food-related companies. For markets, the rally is being driven by three key factors: policy clarity, spending momentum, and growth-friendly signals.
Who Is Sanae Takaichi? The Leader Markets Are Betting On
Sanae Takaichi serves as Japan’s Prime Minister and leads the political movement supporting her pro-market agenda. As a leading conservative figure, she champions economic policies that promote national growth through targeted government spending. Takaichi has clearly outlined her strategic priorities, including AI development, semiconductor manufacturing, defence projects, and the expansion of domestic manufacturing. Business leaders and investors have responded positively to her decisive leadership style, which emphasises growth-driven fiscal policy and has earned her the reputation of Japan’s “Iron Lady” of economics.
Her landslide election victory has further strengthened that confidence. U.S. President Donald Trump offered global endorsement by congratulating Takaichi on Truth Social, calling her a “highly respected and very popular Leader” and describing her decision to call an election as “bold and wise.” With political clarity, fiscal strength, and market optimism now aligned, investors are closely watching how far Takaichi can take Japan’s market rally.
Asian Markets Stock Market Today
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Japan: Markets led the regional rally after a strong election outcome
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South Korea:
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Kospi: +4.15%
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Kosdaq: +2.97%
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Australia:
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S&P/ASX 200: +1.65% in early trade
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Hong Kong:
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Hang Seng Futures: 27,053 vs previous close of 26,559.95
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US Stock Market Recap
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Dow Jones Industrial Average:
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+1,206.95 points (+2.47%) to 50,115.67 (first close above 50,000)
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S&P 500:
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+1.97%, back in positive territory for 2026
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Nasdaq Composite:
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+2.18%
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Key Drivers
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Technology stocks rebound
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Bitcoin recovery supports risk sentiment
(With Inputs From Bloomberge)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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