Japan's stocks zoom, yen slumps as Takaichi win dims BOJ hike bets

6/10/2025 12:57

Japan's Nikkei share gauge surged past the 47,000 level for the first time on Monday after fiscal dove Sanae Takaichi was elected to lead the ruling party and become the next prime minister.



The Nikkei 225 Index surged 3.9% to 47,566.84, after earlier passing the 46,000 for the first time ever. The broader Topix gauge was up 2.3%.



The yield on the two-year Japanese government bond fell 4 basis points (bps) to 0.9%, reflecting expectations of later rate hikes by the Bank of Japan. The yen slid more than 1% against the dollar and euro.



Takaichi was considered to have the most expansionist fiscal and monetary agenda among five candidates in the Liberal Democratic Party race to replace hawkish Prime Minister Shigeru Ishiba.



"The Nikkei was on course to reach as high as 48,000 by year-end, but because Takaichi was chosen as the LDP leader, it shot up toward that level already," said Hitoshi Asaoka, the chief strategist at Asset Management One.