FX.co ★ Japanese Shares Rally on Takaichi Victory

The Nikkei 225 Index surged by 4.75%, closing at a new high of 47,945, while the Topix Index climbed 3.1% to reach 3,225 on Monday. Both indices marked historic peaks following a pivotal ruling party vote that likely positioned fiscal advocate and pro-stimulus lawmaker Sanae Takaichi as Japan's forthcoming prime minister. In the contest to succeed the hawkish Prime Minister Shigeru Ishiba within the Liberal Democratic Party, Takaichi emerged as the most expansionary candidate. Her stance is closely aligned with the expansionary "Abenomics" approach championed by the late Shinzo Abe. Following her win, Takaichi underscored the importance of synergy between the government and the central bank to drive demand-led inflation, underpinned by increased wages and corporate earnings. The technology sector spearheaded the market's rise, with remarkable performances from companies such as Advantest, which soared 14%, Disco Corp with a 5.9% gain, Tokyo Electron rising by 7.3%, SoftBank Group appreciating 4.1%, and Lasertec increasing by 7.2%.