Japan’s stock market surged on Monday after the ruling Liberal Democratic Party (LDP), led by Prime Minister Sanae Takaichi, won a landslide victory. The Nikkei 225 index jumped 4.4% to a new all-time high, while the broader Topix index added about 2.3%. Political stability and expectations of new economic stimulus reassured investors, and the Japanese yen moved away from the danger zone that threatened currency interventions, Bloomberg reported.
Semiconductor and defense companies were the main beneficiaries of the rally. Chipmaker Advantest Corp. was one of the biggest gainers, jumping 15%.
Analysts predict that large exporting companies (such as Toyota), banks, and the defense sector will remain growth leaders.