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Nikkei 225 Hits Record High Above 56,000 After Japan Election Boosts Market Confidence

Nikkei 225 Hits Record High Above 56,000 After Japan Election Boosts Market Confidence. Source: mcgarrett88, CC BY 2.0, via Wikimedia Commons

Japan’s stock market rallied strongly on Monday, with the Nikkei 225 Index surging to a new all-time high and crossing the 56,000 level for the first time during early trading. The historic rise came as investors reacted positively to Prime Minister Sanae Takaichi’s decisive landslide victory in Sunday’s general election, which strengthened expectations of political stability and pro-growth economic policies in Japan.

In early market activity, the Nikkei 225 jumped 3.4% to 56,083.14, reflecting broad-based buying across key sectors. The rally was not limited to blue-chip stocks, as the broader Topix index also gained momentum, climbing 2.5% to reach 3,792.05. The strong performance highlighted renewed investor confidence in the Japanese equity market, supported by optimism around fiscal reforms, corporate governance improvements, and continued accommodative monetary conditions.

Market participants viewed the election outcome as a major catalyst, reducing political uncertainty and reinforcing expectations that the new administration will continue policies aimed at economic revitalization, wage growth, and support for corporate profitability. Analysts noted that foreign investor inflows also played a role, as global funds increased exposure to Japanese stocks amid a weaker yen and improving earnings outlook.

Among the top-performing stocks in the Nikkei 225, Aozora Bank recorded one of the largest percentage gains, rising 2.7% as financial shares benefited from expectations of improved economic activity. Tokyo Gas also advanced 2.7%, supported by steady demand prospects and defensive appeal within the utilities sector. JFE Holdings gained 2.5%, reflecting optimism toward industrial and steel-related stocks tied to infrastructure investment and manufacturing growth.

The record-breaking move underscores Japan’s position as one of the strongest-performing major equity markets globally. With the Nikkei index continuing its upward trend, investors remain focused on upcoming policy signals from the new government, corporate earnings updates, and global economic developments that could influence market direction in the coming weeks.

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