Nikkei 225 Hits 3.9% to 56,363.94, Driven by PM Takaichi Spending Hopes

Japanese stocks surged to record highs Monday, February 9, 2026, as PM Sanae Takaichi’s landslide election victory in Tokyo fueled expectations of expanded government spending. The Nikkei 225 closed at 56,363.94, up 3.9%, and the Topix reached 3,783.57, up 2.3%. Tech and machinery led gains, with chip-equipment makers rising over 10% and Kawasaki Heavy Industries climbing 16% after upbeat earnings. Takaichi’s Liberal Democratic Party victory is expected to reduce coalition constraints, enabling fiscal expansion in AI, semiconductors, quantum computing, and defense through 2028. Advisors lifted their year-end Nikkei target to 61,000 from 60,000, citing higher bond yields, potential defense spending increases, and a temporary reduction in the food-related consumption tax. Real estate and construction stocks also outperformed.