Tokyo stocks surged to a record high on Monday, leading gains across Asia after Japan’s ruling coalition secured a landmark election victory that cleared the way for Sanae Takaichi to form the country’s next government.

The benchmark Nikkei index jumped sharply at the open and extended gains through the session, as investors welcomed the prospect of political stability and a pro-growth economic agenda. Financials, industrial exporters, and technology shares were among the strongest performers, reflecting optimism that policy continuity and structural reform would support corporate earnings.

Markets reacted positively to signals from Takaichi’s campaign emphasizing economic revitalisation, support for domestic manufacturing, and a commitment to fiscal measures aimed at strengthening growth. Investors also interpreted the decisive election outcome as reducing near-term political uncertainty, a factor that has weighed on Japanese assets in previous cycles.

The rally in equities came alongside a softer yen, which further boosted exporter stocks by improving overseas revenue prospects. Analysts said expectations of accommodative monetary conditions, combined with clearer political leadership, reinforced Japan’s appeal relative to other regional markets.

Across Asia, sentiment improved in tandem. Equity markets in South Korea, Hong Kong, and Australia posted gains, tracking Japan’s advance as global investors rotated into Asian assets at the start of the week.

Looking ahead, market participants will be closely watching the formation of Takaichi’s cabinet and the details of her policy agenda, particularly on fiscal spending, energy security, and corporate governance reforms. For now, investors appear confident that the election result marks a turning point, propelling Japanese equities into uncharted territory.