Takaichi's Ascent Spurs Record High in Japanese Shares

Japanese shares hit record highs as Sanae Takaichi emerged as the likely new premier, boosting expectations of big spending and loose monetary policy. The Nikkei 225 soared 4.75%, while the yen and long-term bonds fell. Takaichi's policies are seen as expansionist, following the 'Abenomics' approach.

Japanese shares reached unprecedented highs as Sanae Takaichi was poised to become the country's next premier. The announcement led to a 4.75% surge in the Nikkei 225, closing at 47,944.76, with the yen and long-term bonds experiencing a sharp decline.

Takaichi, known for her expansionist fiscal and monetary policies reminiscent of 'Abenomics', has captured investor interest. Her proposed focus on strategic investments in sectors like AI and nuclear fusion has already spurred gains among related stocks in Tokyo.

Market dynamics shifted as the 30-year Japanese government bond yields soared to record highs, reflecting skepticism about future fiscal policy under Takaichi's leadership. Investors are closely monitoring her appointments and potential fiscal measures after her strong victory in the LDP race.

(With inputs from agencies.)