According to the Nikkei 225’s official site, the average closing price was 56,363.94, up 2,110.26, or 3.89 percent, following a high of 57,337.07 during the day.
The Nikkei newspaper described this closing figure as a new record high.
The Japan Broadcasting Corp., known as NHK, cited the count results, which showed Takaichi’s Liberal Democratic Party (LDP) securing 316 of the 456 seats in the lower house. This marks a record since the LDP’s foundation in 1955 and surpasses the 300 seats won by Prime Minister Yasuhiro Nakasone in 1986.
Combined with the 36 votes from the LDP’s allies—the Japan Innovation Party—the ruling coalition holds 352 seats, three-quarters of the house.
The victory gives Takaichi a strong mandate to pursue measures to improve Japan’s economy, including tax cuts and increased military readiness.
However, she has stressed that her stimulus plans will not strain the country’s finances, a concern for markets given that Japan has the world’s heaviest debt burden.
Nagahama Toshihiro, the executive chief economist at Dai-Ichi Life Research Institute, said investors were surprised by the election results.
“Judging by the Nikkei futures hitting around 58,000 [at opening], it must have been a pretty big positive surprise,” Nagahama said.
Loo Masahiko, a senior fixed-income strategist at State Street, said the result “reduces political uncertainty and strengthens the broader ‘Japan is Back’ narrative.”
“Investor focus is broadening beyond initial ‘Takaichi trade’ winners such as exporters, cyclicals, financials and defence,” Loo said.
“It’s not just a stable administration—what’s coming into view is the prospect of a long-term administration,” said Ide Shingo, chief equity strategist at NLI Research Institute.
“I don’t think it will keep rising at this pace. If it were to shoot straight to 60,000, that would be a bit overdone.”
Ide was referring to the Nikkei share average, also noting that it may eventually “settle down” at roughly 56,000.
The prime minister’s first step will be to reappoint her cabinet. She will also work on her budget bill to fund economic measures to address sluggish wages and rising costs when the lower house reconvenes in mid-February.
Takaichi Thanks Trump
Ahead of the Feb. 8 election, President Donald Trump posted on Truth Social a message of support to Takaichi, writing, “It is my Honor to give a Complete and Total Endorsement of her, and what her highly respected Coalition is representing.”Trump congratulated Takaichi on her victory on Feb. 8, writing on social media: “I wish you Great Success in passing your Conservative, Peace Through Strength Agenda. The wonderful people of Japan, who voted with such enthusiasm, will always have my strong support.”
On Feb. 9, Takaichi extended her thanks to Trump for his support, writing on X that she looks forward to visiting the White House in the spring and continuing to strengthen the alliance between Japan and the United States.
“Our Alliance and friendship with the United States of America are built on deep trust and close, strong cooperation. The potential of our Alliance is LIMITLESS,” she wrote.
“Let us work together to ensure that our Alliance continues to bring peace and prosperity to our two nations—and beyond.”
