Tokyo’s Nikkei 225 index rose sharply by 4.7% after Prime Minister Sanae Takaichi’s party achieved a two-thirds supermajority in the recent parliamentary election. The strong electoral result is seen as a mandate for Takaichi to implement her policy agenda.
Following the election, Takaichi indicated plans to focus on market-friendly measures aimed at supporting economic growth. Investors responded positively to the prospect of continued government stability and policy clarity.
**Why this matters**
A supermajority gives the ruling party greater control over legislation, allowing for smoother passage of economic reforms. Market-friendly policies can influence investor confidence and impact Japan’s economic outlook. The election outcome may also affect Japan’s domestic and international policy directions in the coming years.
Source: NewsData