Japan’s benchmark Nikkei 225 index surged past the 47,000 mark for the first time on Monday, following the ruling Liberal Democratic Party’s (LDP) decision to elect Sanae Takaichi as its new leader. The 64-year-old conservative politician is now set to become Japan’s first female prime minister, fueling optimism among investors about policy continuity and potential economic stimulus.
Takaichi, known for her pro-growth and expansionary economic stance, is expected to maintain pressure on the Bank of Japan (BoJ) to keep interest rates low in order to support growth. The sentiment boosted equities, with the Nikkei 225 soaring 4.32% at 4:01 am CET to 47,763 points, marking a historic milestone for Japanese markets.
Elsewhere in the Asia-Pacific region, Australia’s S&P/ASX 200 slipped 0.13%, while Hong Kong’s Hang Seng fell 0.36%. Chinese and South Korean markets remained closed for holidays.
The yen weakened 1.56% against the US dollar, trading at ¥149.8070 at 4:05 am CET, as markets priced in expectations of continued monetary easing under Takaichi’s leadership.
