Nikkei Soars After Takaichi Wins LDP Leadership

Japanese stocks surged to record highs as the Nikkei jumped about 4–5% and briefly topped 48,000 after Sanae Takaichi was elected leader of the ruling Liberal Democratic Party and is poised to become the country's first female prime minister. The yen plunged toward ¥150 per dollar and hit all‑time lows versus the euro, while long‑dated Japanese government bond yields jumped to record highs even as short‑dated yields eased, reflecting rapid repositioning in fixed‑income markets. Automakers and electronics stocks led gains amid reports of possible U.S. tariff developments and broader risk appetite. Gold rose toward $4,000 and bitcoin reached record highs as some investors sought alternative stores of value, and market participants described a growing 'Takaichi trade'—long equities and short long‑dated JGBs. Analysts warned that optimism may be premature given uncertainty over cabinet appointments, the LDP's parliamentary position and how far the new leadership will press the Bank of Japan.