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Asia Stocks Rally as Nikkei Hits Record High Post-Takaichi Victory

Investing.com •
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Asia stocks surged Monday following Wall Street's tech-driven rebound, with Japan's Nikkei index soaring above 57,000 after Prime Minister Sanae Takaichi's coalition secured a decisive lower-house election win. The broader index rose 3.4%, marking a record high. Risk appetite improved after U.S. markets recovered from AI-related volatility, with futures gaining modestly in Asian sessions.

Takaichi's victory grants her greater policy flexibility, prompting expectations of increased public spending, tax incentives, and support for tech, defense, and energy sectors. Analysts note this could boost local equities but may pressure government bonds and the yen. Meanwhile, AI-related shares, including South Korea's Samsung and SK Hynix, surged over 5% on reports of advanced chip production plans.

Investors remain cautious amid lingering tech sector volatility and await U.S. economic data on jobs and inflation.