Europe Asia News

According to Japan’s public broadcaster NHK, the ruling Liberal Democratic Party secured a two-thirds majority in the 465-seat lower house. NHK-compiled figures show that Takaichi’s coalition won 352 of the 465 seats in Japan’s House of Representatives, while the LDP alone secured a majority with 316 seats.

U.S. President Donald Trump congratulated Takaichi on her victory in a post on TruthSocial, writing: “She is a very respected and very popular leader. Sanae’s bold and smart decision to call elections brought great success. The wonderful people of Japan who voted with such enthusiasm will always have my strong support.”

Japan’s Nikkei 225 Index rose 5.6% to 57,337 points, while the Topix Index climbed more than 3% to a record high.

Other Asian markets also advanced. South Korea’s Kospi Index gained 4.15%, while the small-cap Kosdaq Index rose 2.97%. Australia’s S&P/ASX 200 Index increased 1.65% in early trading. Hong Kong’s Hang Seng Index added 1.5%, while mainland China’s CSI 300 Index rose 0.9%.

Sree Kochugovindan, senior research economist at Aberdeen Investments, said Takaichi’s decisive victory could be “the best outcome” for markets in the medium term, as strategic investments and tax reform support equities.

The Japanese yen strengthened to 156.88 against the dollar. The yield on 10-year Japanese government bonds rose about 4 basis points to 2.274%, while the yield on 20-year bonds increased about 3 basis points to 3.158%.

Crédit Agricole CIB said in a note published after Takaichi’s victory that her administration has gained stronger momentum to implement a major shift toward proactive fiscal policy with clear public backing.

The election followed political turmoil after the LDP lost its majority in the upper house last year and suffered a defeat in the lower house in 2024, developments that led to the resignation of then Prime Minister Shigeru Ishiba in September.