Nikkei 225 Hits Record Highs Following Takaichi’s Landmark Victory
Japan’s benchmark Nikkei 225 index has reached unprecedented heights in the wake of Prime Minister Sanae Takaichi’s landslide victory in the Lower House elections. On February 9, 2026, the index crossed the 57,000 mark for the first time and continued its record-breaking rally, closing at 56,363.94 points, a 3.9% increase on the day.
The ruling Liberal Democratic Party secured a two-thirds supermajority in the 465-seat lower house, providing Takaichi with a clear mandate to implement fiscal expansionary policies. The market is responding positively to what analysts are referring to as the “Takaichi trade“, with the anticipation of substantial fiscal stimulus and strategic investments in sectors such as AI, semiconductors, and defense.
Leading the rally were the tech and machinery sectors, with some chip-gear manufacturers seeing over a 10% rise. Chip-testing giant Advantest saw a 12% increase on Monday, while defense manufacturers Kawasaki Heavy Industries soared by 16%. JPMorgan Securities strategists have raised their year-end Nikkei target to 61,000 from 60,000, citing political stability and a clear fiscal policy direction through 2028.
“The strong LDP win is warming the hearts of investors,” said Frederic Neumann, Chief Asia Economist at HSBC. “The hope is that the strong majority will give the LDP more leeway in pursuing growth-friendly policies.”
The broader Topix index also reached a record high of 3,783.94, marking a 2.3% increase.
Source: CNBC