Markets Give Takaichi Benefit of Doubt as Stocks, Yen Climb

Investor reaction to Japan’s election signals at least a temporary reprieve for Prime Minister Sanae Takaichi from market ructions that have threatened to undermine her spending plans.

Japanese equities surged to fresh record highs on Monday after Takaichi’s party achieved the biggest post-war victory for a single party in a general election. The yen and government bonds stayed noticeably calmer than many had feared following weeks of volatility fueled by concerns about fiscal sustainability.