‘Iron Lady’ Effect in Full Swing: Nikkei Breaks Records, Jumps 5% as PM Sanae Takaichi’s Victory Sparks Asian Market Rally

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

• Japan: Markets led the regional rally after a strong election outcome

• South Korea:

  • Kospi: +4.15%

  • Kosdaq: +2.97%

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• Australia:

  • S&P/ASX 200: +1.65% in early trade

• Hong Kong:

  • Hang Seng Futures: 27,053 vs previous close of 26,559.95

US Stock Market Recap

• Dow Jones Industrial Average:

  • +1,206.95 points (+2.47%) to 50,115.67 (first close above 50,000)

• S&P 500:

  • +1.97%, back in positive territory for 2026

• Nasdaq Composite:

  • +2.18%

Key Drivers

• Technology stocks rebound

• Bitcoin recovery supports risk sentiment

(With Inputs From Bloomberge)

Also Read: What Will Monday Stock Market Look Like? Global Rally, Dow Record High Set The Stage For A Gap-Up Start For Sensex, Nifty 50