Nikkei Hits Another High after LDP’s Landslide Election Victory

Tokyo, Feb. 9 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average soared to another all-time closing high on Monday, following the ruling Liberal Democratic Party’s sweeping victory in Sunday’s House of Representatives election. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section temporarily gained over 3,000 points before closing at 56,363.94, up 2,110.26 points, or 3.88 pct, from Friday. The broader TOPIX index rose 84.57 points, or 2.29 pct, to 3,783.57. About 80 pct of stocks on the Prime section advanced after the LDP, headed by Prime Minister Sanae Takaichi, secured a two-thirds majority in the all-important lower chamber of the Diet. “The market had priced in a simple majority win for the LDP alone, but the election outcome (for the party) was stronger than expected,” said an official of a Japanese securities firm. Stocks were driven by the so-called Takaichi trade after the election results boosted hopes for her economic stimulus measures with aggressive fiscal spending. “Concerns about possible political turmoil receded, and market participants grew hopeful that Prime Minister Takaichi will press ahead with aggressive fiscal policy,” said an official of a major brokerage firm. Meanwhile, an official of a midsize securities firm warned that the stock market has been rising “too rapidly.” END [Copyright The Jiji Press, Ltd.]