Japanese stocks hit an all-time high after the Liberal Democratic Party (LDP) won a decisive victory in the recent election. Led by Sanae Takaichi, the LDP secured a clear majority in the lower house, which should make it much easier for the government to pass new laws.

Financial markets responded immediately to the news. The Nikkei index rose sharply, while the value of the yen shifted as investors processed the results. Analysts point to Takaichi’s economic plans as a major driver for these gains. Her proposals include a new stimulus package to jumpstart the economy and a plan to temporarily stop collecting certain taxes. While these measures sparked a market rally, some officials remain cautious. They are closely monitoring the markets and raising questions about how the government will fund these expensive new programs.