The Nikkei 225 experienced a record rally, breaching the 57,000 level with a 3.4% gain following Sanae Takaichi’s victory in the Japanese general election. This political event also influenced other markets, with bitcoin briefly reaching $72,000 before stabilizing above $70,000. In addition, gold prices soared past $5,000 per ounce, reflecting a broad market impact. The “Takaichi Trade” has prompted increased investor interest and boosted safe-haven assets.
Sanae Takaichi achieved a decisive “supermajority” victory in Japan’s general election held on Sunday. Her electoral success has reinforced political stability and support for her leadership. Alongside this political change, a $135 billion stimulus package was announced. This package focuses on infrastructure spending and tax cuts, aiming to boost economic growth and enhance capital expenditure in crucial sectors. The combination of political stability and significant fiscal measures is expected to have a notable impact on Japan’s economic landscape.
Following Sanae Takaichi’s decisive victory in Japan’s general election, the Nikkei 225 surged, breaking the 57,000 level with a 3.4% gain. This market exuberance, termed the “Takaichi Trade,” had widespread effects across global markets. Notably, it drove prices of safe-haven assets higher, reflecting increased investor confidence and interest.
Simultaneously, bitcoin experienced volatility, briefly peaking at $72,000 before settling above $70,000 during Asia’s morning trading hours. This fluctuation highlights the cryptocurrency market’s sensitivity to major political changes and economic stimuli. Gold, a traditional safe-haven asset, saw prices rise above $5,000 per ounce, underscoring its value in times of economic adjustments and investor hedging.
Further reflecting market optimism, U.S. stock futures opened higher, signaling positive sentiment across major financial markets. These movements indicate the global reach and impact of the political changes in Japan, affecting diverse asset classes and geographical markets.
Donald Trump and U.S. Treasury Secretary Scott Bessent congratulated the Japanese Prime Minister. Trump stated he eyes 100,000 on the Dow Jones Industrial Average by the end of his term. That 100,000 target represents a 100% increase from current levels. Scott Bessent also issued a congratulatory message to the Prime Minister.
The Dow Jones Industrial Average breached 50,000 for the first time on Friday. That milestone was reported as a recent development in global markets. The breach was noted separately from other market moves listed in the same reporting. The statements and the Dow milestone were included among a series of market-related facts.
These reported remarks and the Dow milestone were presented in the same coverage. They appear as distinct factual items in the reporting.
Coverage described market momentum as bullish and optimistic following the Japanese election outcome. Political support for the new government and a market reaction associated with Takaichi’s victory drove equities higher and produced a global ripple effect. The same dynamics lifted prices of safe-haven assets across multiple markets. Movements were evident across a range of asset classes and geographic regions.
In summary, political developments and subsequent market reactions combined to create broad bullish momentum in global markets. The reporting presented these developments as supporting higher valuations in both equity and safe-haven markets.
