Tokyo’s Nikkei 225 index surged by 4.7% after Prime Minister Sanae Takaichi’s party won a two-thirds supermajority in the recent parliamentary election. The victory positions her government to advance its legislative agenda with greater ease.
Following the election, Takaichi indicated her intention to implement policies favorable to the market, signaling potential economic and regulatory changes that investors may welcome.
**Why this matters**
A supermajority gives the ruling party significant control over the legislative process, allowing for swift passage of laws and reforms. Market-friendly policies under Takaichi’s leadership could influence Japan’s economic growth, corporate environment, and investor confidence.
Source: NewsData