The Nikkei 225 surged by 3.1%, closing at 53,549, while the broader Topix Index increased by 2.41% to reach 3,599 on Tuesday. This marked new record highs for Japanese stocks amid speculation that Prime Minister Sanae Takaichi might announce a snap election as early as next month. Takaichi is anticipated to capitalize on her strong public support to push for expansionary fiscal measures, thereby enhancing the nation’s growth prospects. The prospect of favorable valuations, coupled with expectations of strong earnings and economic growth, continued to attract foreign investors. Leading the rally were technology stocks, which saw significant gains including Advantest rising by 8.5%, SoftBank Group by 4.3%, Tokyo Electron by 8.2%, Lasertec by 8.9%, and Kioxia Holdings by 7.8%. Other major companies also experienced an upward trend, with Mitsubishi UFJ up by 5.3%, Mitsubishi Heavy Industries by 4.9%, and Toyota Motor by 7.5%.