Takaichi Win Sends Nikkei to Record Highs

Japan’s markets surged after Sanae Takaichi was elected leader of the ruling Liberal Democratic Party, pushing the Nikkei 225 to multiple record highs — briefly surpassing 48,000 and moving past 47,000. Investors priced in pro‑stimulus fiscal policy and executed a “Takaichi trade” of long equities and short Japanese government bonds, which boosted buying in semiconductors, defense and tech names including Hitachi, Capcom and SoftBank while putting pressure on long‑dated JGBs. The yen weakened toward the ¥150 per dollar level and yields across maturities rose as traders anticipated looser fiscal settings and renewed debate over Bank of Japan rate timing. Global equity sentiment, including gains tied to rising AI valuations, added to upside momentum, though analysts warned the rapid rally could overheat and remain sensitive to cabinet picks and coalition politics.