The Nikkei 225 Index climbed 1.6% to move above 57,200, while the broader Topix Index advanced 1.4% to 3,836 on Tuesday, as Japanese equities notched fresh record highs following Prime Minister Sanae Takaichi’s decisive victory in Sunday’s general election. The landslide win handed her a strong mandate to pursue increased fiscal spending and tax cuts, and on Monday she reaffirmed her pledge to suspend the 8% sales tax on food for two years.
Investors also appeared willing to give her the benefit of the doubt after she insisted the stimulus package would not further burden Japan’s already stretched public finances. Technology and AI-related names led the rally, mirroring gains on Wall Street. Standout performers included Fujikura, up 8%; Kioxia Holdings, up 2.1%; SoftBank Group, up 6.9%; Tokyo Electron, up 2.7%; and Disco Corp, up 2.4%. Major defense, financial and consumer stocks also logged solid advances, supported by optimism over higher defense spending and a broader uplift in economic activity.
