Japan’s Nikkei 225 index soared to an all-time high on Monday, following the election of Sanae Takaichi as the new leader of the ruling Liberal Democratic Party (LDP).
Nikkei Hits Record High as Takaichi Poised For PM Role
The Nikkei 225 index surged over 4% to reach a record high after the LDP elected Sanae Takaichi, a staunch conservative, as its new leader on Saturday. This election positions Takaichi to become Japan’s first female prime minister.
Gains in real estate, technology, and consumer cyclical stocks drove the initial surge. Crédit Agricole CIB’s weekend report suggested that Takaichi, in line with the government’s “high-pressure economy” policy, is likely to urge the Bank of Japan to retain its accommodative monetary policy.
The report also indicated that she might be open to a 25-basis-point rate hike by the BOJ by January 2026.