Global stock markets surged on Monday after investors reacted positively to the decisive outcome of Japan’s recent parliamentary election, where Prime Minister Sanae Takaichi’s ruling coalition secured a strong mandate. Japan’s benchmark **Nikkei 225 index climbed sharply — rising as much as about 5.6% to record highs above 57,000 — on bets that the political clarity will pave the way for increased fiscal stimulus, tax incentives and stronger corporate investment policies.
The upbeat mood in Tokyo spilled over into other Asian markets, with key indexes such as South Korea’s Kospi and Hong Kong’s Hang Seng also posting solid gains in early trading, as investors grew more confident in risk assets.
European and U.S. stock futures followed suit, supported by expectations that central banks may maintain accommodative stances while economies show resilience. Market participants pointed to improved corporate earnings prospects and stronger global consumption linked to reduced political uncertainty in Japan.
Analysts said the rally reflects a broader “risk-on” sentiment, as clarity around Japan’s leadership and policy direction encouraged funds to flow into equities and other growth-oriented assets. Despite some concerns about valuation levels and currency volatility, the overall market tone remains positive on prospects for sustained global economic expansion, news as reported.
