Japan's LDP Secures Supermajority, Nikkei Rallies

Japanese Prime Minister Sanae Takaichi's governing Japan===Liberal Democratic Party (Japan) secured a two-thirds supermajority in a parliamentary election, winning 316 seats in the 465-member lower house. This record victory, the largest since the party's foundation in 1955, has been widely embraced by markets, as it removes political ambiguity and is expected to lead to market-friendly policies aimed at strengthening Japan's economy. Following the news, Tokyo's Nikkei 225 share index jumped 4.7% to a new record high. Other Asian markets, including South Korea's KOSPI, Hong Kong's Hang Seng Index, and the SSE Composite Index, also advanced. The positive sentiment was amplified by a strong rebound in the U.S. stock market on Friday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all seeing significant gains, driven by a recovery in technology stocks like Nvidia and Broadcom Bitcoin also stabilized after a prolonged plunge, climbing back above $70,000. Sanae Takaichi's immediate task will be to work on a budget bill to address rising costs and sluggish wages.