BANGKOK (AP) — Tokyo’s Nikkei 225 share index jumped 4.7% on Monday after Japanese Prime Minister Sanae Takaichi’s governing party secured a two-thirds supermajority in a parliamentary election.
Takaichi is expected to pursue market-friendly policies. She told public broadcaster NHK later that she is ready to pursue policies to make Japan strong and prosperous.
Markets across Asia also advanced, with South Korea's Kospi surging 4.3% and other benchmarks
gaining more than 1%.
The gains came after the U.S. stock market roared back on Friday as technology stocks recovered much of their losses from earlier in the week and bitcoin halted its plunge.
The S&P 500 rallied 2% for its best day since May. The Dow Jones Industrial Average soared 1,206 points, or 2.5%, and topped the 50,000 level for the first time, while the Nasdaq composite leaped 2.2%.
The combination of a rebound in tech shares, Wall Street’s rally and other upbeat news lifted shares across Asia.
NHK, citing results of vote counts, said Takaichi’s Liberal Democratic Party, or LDP, alone secured 316 seats by early Monday, comfortably surpassing a 261-seat absolute majority in the 465-member lower house, the more powerful of Japan’s two-chamber parliament. That marks a record since the party’s foundation in 1955 and surpasses the previous record of 300 seats won in 1986 by late Prime Minister Yasuhiro Nakasone.
Takaichi's first major task when the lower house reconvenes in mid-February is to work on a budget bill, delayed by the election, to fund economic measures that address rising costs and sluggish wages.
By late morning, the Nikkei 225 was up 4.7% at 56,788.85, having topped 57,000 earlier in the session to set a new record. The Kospi gained 4.3% to 5,308.84.
Elsewhere in Asia, Hong Kong's Hang Seng index climbed 1.5% to 26,963.25 and the Shanghai Composite index rose 1% to 4,106.54. Taiwan's Taiex gained 2.4%.
In Australia, the S&P/ASX 200 surged 1.9% to 8,876.50.
On Friday, computer chip companies helped drive the widespread rally, and Nvidia jumped 7.8% to trim its loss for the week, which came into the day at just over 10%. Broadcom climbed 7.1% and erased its drop for the week.
But even with Friday’s surge, the S&P 500 still fell to its third losing week in the last four. Apart from worries about spending by Big Tech companies, which are Wall Street’s most influential stocks, concerns about AI potentially stealing customers from software companies also hurt the market. Software stocks got hit particularly hard after AI firm Anthropic released free tools to automate things like legal services.
Bitcoin, meanwhile, steadied following a weekslong plunge that had sent it more than halfway below its record price set in October. It climbed back above $70,000 after briefly dropping close to $60,000 late Thursday.
Prices in the metals market also calmed a bit following their own wild swings. Gold rose 1.8% to settle at $4,979.80 per ounce, while silver added 0.2%.
