Prosper Okoye
Japanese stocks hit record highs Monday after Prime Minister Sanae Takaichi’s Liberal Democratic Party (LDP) secured an unprecedented two-thirds majority in the lower house, giving her government broad authority to pursue pro-business reforms and economic stimulus measures.
The Nikkei 225 index jumped more than 5% in early trading, briefly surpassing the 57,000 mark, as investors welcomed political stability and the prospect of tax cuts, deregulation, and public spending programs.
Sunday’s election delivered 316 of 465 lower house seats to the LDP, with coalition partner Japan Innovation Party adding 36 seats. This marks the first time a single party has won a two-thirds majority since Japan’s current parliamentary system was established in 1947.
Join our WhatsApp ChannelTakaichi, Japan’s first female prime minister, called a snap election last month just weeks after taking office. Her decisive victory contrasts with her predecessors, under whom the LDP lost ground amid corruption scandals and rising living costs.
“The scale of this mandate gives us the responsibility to deliver on our campaign pledges,” Takaichi said, according to Kyodo News. She pledged a “responsible yet aggressive” fiscal policy and said there would be no cabinet reshuffle less than four months into her administration.
Market analysts said the election outcome is expected to boost investor confidence. Yuka Marosek, an investment analyst, told the BBC that expectations of stimulus measures and regulatory reforms could drive further gains in Japanese equities.
Despite historically low inflation, Japan faces economic challenges from an ageing population, rising social welfare costs, and a shrinking workforce. Voters cited higher grocery and rent costs as key concerns during the campaign.
Takaichi has also strengthened her political position within the LDP by pushing long-standing goals, including revising Japan’s pacifist constitution, while appealing to younger voters with a modern personal style that includes signature handbags and pink pens.
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International reaction was swift. U.S. President Donald Trump congratulated Takaichi on her win, noting his prior endorsement of her candidacy. Takaichi is scheduled to meet Trump again in Washington in March to discuss economic partnerships and international cooperation.
Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa
