Nikkei Soars as Japan Welcomes its First Female Prime Minister

Japan's Nikkei index surged nearly 5% following the election of Sanae Takaichi as leader of the ruling Liberal Democrats, poised to be the first female prime minister. Takaichi's market-friendly policies boosted investor optimism, especially in defense and automaker shares. The yen weakened, and oil prices rose amid a positive global outlook.

Japan's Nikkei index jumped nearly 5% on Monday as investors reacted positively to the election of Sanae Takaichi, set to be the first female prime minister. Her leadership promises continuity in the Liberal Democrats' market-friendly policies, boosting confidence among foreign investors.

Defense and automaker shares saw significant gains, with Kawasaki Heavy Industries rising 9.2% and Toyota Motor Corp. increasing 4.9%. The yen weakened against the US dollar, reflecting anticipated increases in government spending under Takaichi's leadership.

Meanwhile, global oil prices witnessed a rise as the OPEC+ alliance agreed to a slight output boost, signaling steady economic recovery. Mixed reports emerged from the US regarding business activity, though Wall Street closed higher Friday, continuing its record-setting trend.

(With inputs from agencies.)