Japan’s Nikkei tops 57,000 after general election…global assets rally on hopes for expansionary fiscal policy
Summary
- Japan’s Nikkei 225 reportedly broke above 57,000 for the first time after the general election, as political uncertainty eased and expectations grew for large-scale fiscal expansion.
- Prime Minister Sanae Takaichi has flagged a $135 billion stimulus package, which markets are interpreting as approval for an aggressive expansionary fiscal stance.
- The so-called Takaichi trade fueled a broader global risk-on move, with gold above $5,000, bitcoin up to $72,000, and U.S. equity futures rising.
Japanese equities notched fresh record highs after the general election, as political uncertainty eased and expectations rose for large-scale fiscal expansion.
According to CoinDesk on the 8th (local time), the Nikkei 225 surged 3.4% from the previous session, breaking above 57,000 for the first time. The move was attributed to the ruling party led by Prime Minister Sanae Takaichi securing a “supermajority” in the general election the day before, reinforcing its mandate to push through policy.
Prime Minister Takaichi has signaled a roughly $135 billion stimulus package centered on infrastructure investment and tax cuts. Markets are treating the election outcome as a de facto endorsement of an aggressive expansionary fiscal stance.
The so-called “Takaichi trade” also spread across global asset markets. Gold rose above $5,000 an ounce, while bitcoin climbed as high as $72,000 before trading in the low-$70,000 range during Asian hours. U.S. equity futures also opened broadly higher.
Political tailwinds added to the momentum. U.S. President Donald Trump and Treasury Secretary Scott Bessent sent congratulations on Prime Minister Takaichi’s election victory. Trump, meanwhile, noted that with the Dow Jones index recently topping 50,000, it could reach 100,000 by the end of his term—stoking risk appetite.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
