The outright majority secured for Prime Minister Fumio Kishida’s ruling party is expected to bring about smooth passage of fiscal stimulus and ease concerns of political uncertainty, market players said.
Kishida’s ruling Liberal Democratic Party won 261 seats in Sunday's election to preserve its outright majority in the 465-seat Low House of the Diet. Although the party dropped from the 276 seats it held when the Diet was dissolved, the LDP avoided worst-case scenarios that opinion polls had suggested beforehand.
On Monday, the 225-issue Nikkei average jumped 754.39 points, or 2.61%, from Friday to reach 29,647.08, its highest close since Sept. 28, reflecting investors' relief following the LDP's comfortable win.