Japanese stocks jumped to a record high on Monday, leading gains in the region after Prime Minister Sanae Takaichi won a landmark election victory.

The ruling Liberal Democratic Party won a two-thirds absolute majority in the 465-seat lower house, public broadcaster NHK reported.

“In the medium term, a decisive win on the upside is likely to be the best outcome for the market as strategic investments and tax reforms boost equities,” said Sree Kochugovindan, senior research economist at Aberdeen Investments.

Japanese Nikkei 225 Index It rose more than 5.6% and exceeded 57,000 points for the first time. The Topix rose more than 3% and also hit a record high.

The yen strengthened to 156.88 against the dollar. The 10-year Japanese government bond yield rose nearly 4 basis points to 2.274%, and the 20-year Japanese government bond yield rose about 3 basis points to 3.158%.

Crédit Agricole responded in a report following its victory that the Gau municipality had gained stronger momentum to push for a major shift towards an active fiscal policy, backed by a clear public mandate.

US President Donald Trump congratulated Takaichi on his victory in a TruthSocial post.

“She is a well-respected and very popular leader. “Sanae’s bold and wise decision to call for elections paid off tremendously,” he wrote. “The wonderful people of Japan who voted with such enthusiasm will always have my strong support.” “

The election follows political turmoil last year, when the LDP lost its upper house majority and a defeat in the lower house in 2024, leading to the resignation of then-Prime Minister Shigeru Ishiba in September.

Other Asian markets were also higher, with South Korea’s Kospi rising 4.15% and the small-cap Kosdaq rising 2.97%.

Australian S&P/ASX 200 Index It was up 1.65% in early trading.

Hong Kong Hang Seng Index Futures were at 27,053 points, while the index last closed at 26,559.95 points.

U.S. futures were slightly higher in early Asian trading.

U.S. stocks soared on Friday, with technology stocks recovering after days of heavy selling. Bitcoin The popular cryptocurrency has rebounded after falling more than 50% from its October highs.

this Dow Jones Industrial Average It rose 1,206.95 points or 2.47% to close at 50,115.67 points. Friday marked the first time the Dow Jones Breaking through the 50,000 level. this S&P 500 Index rose 1.97% to close at 6,932.30, while Nasdaq Composite Index rose 2.18% to 23,031.21. With these moves, the S&P 500 is back in the green in 2026.

Despite Friday’s strong performance, the S&P 500 is still down 0.1% for the week, while the Nasdaq is still down 1.8% for the week. The 30-stock Dow Jones index is up 2.5% so far this week, benefiting from a rotation into some cyclical stocks, even as the overall market has been weighed down by a selloff in technology stocks.

—CNBC’s Sean Conlon and Alex Harring contributed to this report.