FX.co ★ Japanese Shares Rally on Takaichi Victory

On Monday, the Nikkei 225 Index soared approximately 4% to reach around 47,600, marking new record highs. This surge came following a ruling party vote that set the stage for Sanae Takaichi, known for her fiscal dovishness and pro-stimulus stance, to become Japan's next Prime Minister. In the race within the Liberal Democratic Party to succeed the hawkish Prime Minister Shigeru Ishiba, Takaichi emerged as the most expansionary candidate, closely aligned with the late Shinzo Abe's "Abenomics" policies. Following her victory, Takaichi stressed the importance of close cooperation between the government and the central bank to stimulate demand-driven inflation, supported by rising wages and corporate profits. The technology sector spearheaded the gains, with Advantest climbing 6%, Disco Corp rising 5%, Tokyo Electron advancing 4%, SoftBank Group increasing by 2.8%, and Lasertec up by 4.5%.