Japanese stocks surged to record highs on Monday (February 9, 2026) after Prime Minister Sanae Takaichi’s ruling Liberal Democratic Party secured a landslide victory in a snap lower house election, though analysts warned challenges remain in keeping voters and markets satisfied. The LDP won a two-thirds majority in Sunday’s (February 8) vote — its best result since the party’s founding in 1955 — strengthening Ms. Takaichi’s mandate just months after she became Japan’s first woman prime minister. The Nikkei 225 jumped more than 5% to briefly top 57,000, while the yen strengthened. However, economists cautioned that high inflation, rising debt and limited fiscal space could test her leadership. Concerns over food prices, tax policy and government borrowing may temper market optimism and risk voter disappointment despite the historic win.
