JAPAN ELECTION: Takaichi secures historic victory

International

PRIME Minister Sanae Takaichi’s Liberal Democratic Party (LDP) scored a historic election win, sending Japanese stocks sharply higher on Monday, Feb. 9.

For the first time since Japan’s parliament was established in its current form in 1947, the LDP captured a two-thirds majority in the lower house, winning 316 of 465 seats in Sunday’s election. Its coalition partner, the Japan Innovation Party, claimed 36 seats, bringing their combined total to 352.

The victory is a gamble that has paid off for Takaichi, who now faces the challenge of revitalizing Japan’s fragile economy and addressing rising living costs.

A report by BBC said that the Nikkei 225 index surged more than 5% in early trading on Monday, briefly surpassing the 57,000 mark before settling at a record close of 56,363.94, up 3.9%.

With such a commanding mandate, Takaichi can advance her pro-business agenda with minimal need for opposition negotiations. On Sunday, she told reporters she intends to pursue a “responsible but aggressive” fiscal policy while keeping the current Cabinet intact, noting it was formed less than four months ago.

Takaichi called the snap election shortly after taking office in October, making history and contrasting with her two predecessors, under whom the LDP lost its parliamentary majority amid corruption scandals and struggled to control rising costs.

Market analysts say her pro-growth policies—including stimulus, tax reforms, and deregulation—are boosting investor optimism. Investors anticipate benefits in strategic sectors such as defense and artificial intelligence.

However, those holding government bonds and the yen remain cautious due to concerns about funding her ambitious plans in a country with high public debt.

The election has also drawn international attention. US President Donald Trump congratulated Takaichi on her win and praised her during his previous Tokyo visit. She is scheduled to meet him again in Washington in March.(Jovie Caton Jr., BiPSU Comm Intern)