Japanese stocks surged to a record high after media outlets declared a historic landslide victory for Sanae Takaichi, Japan’s prime minister, in Sunday’s general election, cementing the strongest mandate any single party has achieved in post-war Japan.
According to the BBC, the Nikkei 225 index rallied by more than 5 percent in early trade on Monday, briefly crossing the 57,000 mark for the first time. It then gave up some gains, but still closed up 3.9 percent at a record high of 56,363.94. Markets welcomed the scale of the win, seeing it as a clear signal of continuity and decisiveness in government.
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NHK reported that Takaichi’s Liberal Democratic Party secured 316 of the 465 seats in the House of Representatives, around 68 per cent of the chamber. It is the first time a single party has won a two-thirds majority since Japan’s parliament, the National Diet, was established in its current form in 1947.
Together with its coalition partner, the Japan Innovation Party, the ruling bloc won a total of 352 seats in the lower house.
The outcome represents a dramatic reversal for the LDP. Just months ago, under Takaichi’s predecessor Shigeru Ishiba, a snap election delivered the party’s worst-ever performance, stripping it of its majority and ultimately ending his premiership.
Read also: Sanae Takaichi becomes Japan’s first female prime minister after historic parliamentary vote
Takaichi called this election soon after making history last October as Japan’s first female prime minister, initially chosen by lawmakers. She said she needed a clear public mandate to govern.
“We bear an extremely heavy responsibility to focus on steadily delivering on the campaign pledges we have made,” Takaichi said on television on Sunday as the scale of the victory became clear, according to Kyodo News.
She confirmed that she would not reshuffle her cabinet, formed less than four months ago, describing it as “a good team”. While the Japan Innovation Party will support the government, it will not take any ministerial positions under the coalition agreement.
The election took place against a difficult economic backdrop, with households facing rising living costs and years of sluggish growth. The yen strengthened slightly against the US dollar on Monday, though it remains near 18-month lows, a weakness that has pushed up import costs and fuelled inflation.
During the campaign, Takaichi argued that a weak yen could be “a major opportunity” for export industries, a view that contrasted with the stance of Japan’s finance minister Satsuki Katayama, who has repeatedly warned of possible intervention to support the currency. After criticism, Takaichi later said on social media that she did not favour any specific direction for the yen.
A weaker currency has helped exporters and boosted tourism, as overseas visitors enjoy cheaper trips to Japan. But it has also driven up food and energy prices, squeezing households and businesses that rely on imports.
Looking ahead, Takaichi has promised what she called a “responsible yet aggressive” fiscal policy to revive an economy that has struggled to grow for decades. She is due to travel to Washington in March for talks with Donald Trump, the United States president, in what will be their second meeting since she took office. Trump endorsed her shortly before the election and later praised her decisive win.
Beyond strengthening ties with Washington, the prime minister is expected to focus on finalising the details of a tariff agreement, now backed by one of the strongest electoral mandates in modern Japanese history.
