Japan’s Nikkei 225 rose to a record on Monday, breaking the 57,000 level with a 3.4% gain after Prime Minister Sanae Takaichi’s decisive “super majority” victory in Sunday’s general election, according to Nikkei Asia.
This political mandate signaled a green light for Takaichi’s aggressive expansionary fiscal agenda, which includes a massive $135 billion stimulus package aimed at revitalizing the economy through infrastructure spending and tax cuts.
The “Takaichi trade” triggered a global ripple effect, driving gold prices past the $5,000-per-ounce milestone and pushing bitcoin to a brief high of $72,000 before falling back above $70,000 in Asia’s morning opening hours. US stock market futures opened higher.
The market euphoria was further boosted by international support, with both President Donald Trump and US Treasury Secretary Scott Bessent congratulating the prime minister.
Trump sees 100,000 on the Dow Jones (DJI) by the end of his term, up 100% from current levels. DJI on Friday broke 50,000 for the first time.
