Takaichi's Historic Supermajority Sends Nikkei Past 57,000 — Japan Becomes Top FDI Destination in Asia

Japan's Nikkei 225 surged past 57,000 for the first time on February 9, closing 3.9% higher at 56,363.94, after Prime Minister Sanae Takaichi's Liberal Democratic Party captured 316 seats — the largest post-war election victory in Japanese history. The LDP–JIP coalition now commands three-quarters of the 465-seat lower house, securing a two-thirds constitutional supermajority.

Markets are pricing in Takaichi's "Abenomics 2.0" agenda: pro-growth fiscal expansion, defence spending increases, and continued pressure on the Bank of Japan to maintain accommodative monetary policy. The yen weakened toward 160/USD as investors anticipated sustained yield differentials. The Topix hit a record 3,783.94, up 2.3%.

For cross-border investors, Japan's political stability creates the most compelling FDI environment in the Asia-Pacific. The supermajority eliminates legislative gridlock on corporate governance reform, defence procurement, and semiconductor industrial policy — all of which are attracting record inflows. Japan's 8.6% February equity rally outpaced Asia ex-Japan's 5.9% gains, drawing global portfolio reallocation. The strategic calculus is clear: in a world of rising geopolitical fragmentation, Japan offers rule-of-law predictability, deep capital markets, and an industrial base increasingly aligned with Western supply chain corridors. Cross-border M&A into Japan — already at a decade high — is poised to accelerate as the supermajority enables faster regulatory approvals.