Sanaetakaichi, the newly elected leader of the liberal Democratic Party (LDP), will speak at a press conference at the party headquarters in Tokyo on Saturday, October 4th, 2025. The Japanese ruling party has been elected the right trend as today’s female leader with a vote that is likely to determine the vote that could become today’s prime minister. Photographer: Torhanai/Bloomberg via Getty Images
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Japan Nikkei 225 The index hit a record high of over 4% on Monday, positioning her as the country’s first female prime minister after the Liberal Democrats were elected to the stubborn, conservative Aso genus as Saturday’s new leader.
The early surge was led by the profits of real estate, technology and consumer cyclical stocks. Yaskawa Electric Corp I jumped over 20% Made in Japan Steel Works An increase of 14%. Mitsubishi Heavy Machinery and Kawasaki Heavy Industries 13% and 12% have been added, respectively.
Given the economic policies of the government in a “high-pressure economy,” Kochi is likely to ask the Bank of Japan to maintain the monetary policy for its accommodation, Credit Agricol Siv wrote in a note over the weekend.
“Recognizing that the current economy is still weak, the Takachi administration is expected to completely shift its policy direction to a new approach (a complete overhaul) that seeks to expand investment and demand through public-private partnerships,” said Ca-Cib’s Note.
Similarly, Topix rose 3%, reaching its all-time high.
The yen weakened by more than 1.72%, temporarily hitting a 150 psychological mark against the greenback to 149.97 per dollar.
According to LSEG data, it was in August that Yen last weakened to 150 levels. In October 2022, the yen temporarily weakened beyond the 151 mark against the dollar, prompting the country’s Ministry of Finance to intervene.
“Our basic case is that JPY’s short-term losses are heading towards 150 as the market adapts to surprises, but not any more material debilitating,” Deutsche Bank wrote in a memo released Monday.
The likelihood of hiking by the Bank of Japan in October should be lower, but the market only costs around 1% terminal rates.
“As the yen contributes to domestic concerns from the yen’s top to the property price, further weakness from the already depressed level may not be welcomed by the government either,” the analyst added.
Japan’s 30-year bond yield rose to 3.263% on 10 basis points, while 20-year debt yields added to 2.674% over 6 basis points. The benchmark 10-year bond yield has been largely unchanged at around 1.659%.
Australia’s ASX/S&P 200 increased by 0.19%.
Hong Kong Hangsen index The Hang Seng Tech index fell by 0.66%, but by 0.22%.
The Chinese and Korean markets were closed on holidays.
Three major averages were closed last week in the US. The S&P 500 retreated from the record on Friday, but retained solid weekly profits, marking just 0.01% at 6,715.79 despite the US government being dragged out on the third day.
NASDAQ composites have decreased by 0.28% to 22,780.51. The Dow Jones industrial average rose 238.56 points (0.51%) to finish at 46,758.28. The Russell 2000 also closed at 2,476.18, popping 0.72%.
– CNBC’s Pia Singh and Sean Conlon contributed to this report.
