Tokyo stocks rallied to a new record and broke 49,000 Monday as Sanae Takaichi's rise to the office of prime minister became a near certainty.

The Nikkei 225 stock index ended the day up 3.37% to a record 49,185.50, rising almost steadily from the morning open.

Optimism took hold as the Liberal Democratic Party and the Japan Innovation Party (JIP) moved closer to forming a coalition, nearly guaranteeing that Takaichi, LDP president, will become prime minister when parliament meets Tuesday.