Japan’s Nikkei 225 index hit a record high on Monday, crossing the 57,000 level with a 3.4% gain following the decisive “supermajority” victory of Prime Minister Sanae Takaichi in Sunday’s general election, according to Nikkei Asia.
This political mandate gave the green light to Takaichi’s aggressive expansionary fiscal program, which includes a massive $135 billion stimulus package aimed at revitalizing the economy through infrastructure spending and tax cuts.
The “Takaichi Trade” sparked a global ripple effect, sending the price of gold past the $5,000 an ounce mark and pushing bitcoin to a brief high of $72,000, before falling back above $70,000 during morning trading hours in Asia. U.S. stock market futures opened higher.
Market euphoria was further boosted by international support, with President Donald Trump and US Treasury Secretary Scott Bessent congratulating the prime minister.
Trump is aiming for 100,000 shares on the Dow Jones (DJI) by the end of his term, a 100% increase from current levels. The DJI surpassed the 50,000 mark for the first time on Friday.
