Japan stocks hit record highs as Sanae Takaichi’s LDP victory drives yen past 150

Japan’s Nikkei 225 index jumped over 4% to hit a record high Monday after the country’s ruling Liberal Democratic Party elected staunch conservative Sanae Takaichi as its new leader Saturday, positioning her to become the country’s first female prime minister. The index closed 4.75% higher to end the trading day at 47,944.76.

The surge was led by gains in real estate, technology and consumer cyclical stocks. Yaskawa Electric Corp jumped over 20%, while Japan Steel Workswas up 14%. Mitsubishi Heavy Industries and Kawasaki Heavy Industriesadded 13% and 12% respectively.

Given the government’s economic policy of a “high-pressure economy,” Takaichi is likely to ask the Bank of Japan to maintain its accommodative monetary policy, Crédit Agricole CIB wrote in a note over the weekend following the results, adding that she would be open to a 25-basis-point rate hike by the BOJ by January 2026.

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