Global markets react with euphoria as Japan’s first female Prime Minister secures a mandate for radical economic reform.

The Tokyo Stock Exchange erupted into a frenzy of buying orders this morning, driving the Nikkei 225 index to a historic all-time high. The catalyst? A landslide election victory for Prime Minister Sanae Takaichi, whose Liberal Democratic Party (LDP) crushed the opposition, securing a supermajority. Investors are betting the house on "Takaichinomics"—a potent cocktail of aggressive fiscal spending, deregulation, and a hawkish stance on national security that promises to shake Japan out of its decades-long slumber.

The Takaichi Trade

The numbers are staggering. The Nikkei surged over 5% in a single session, breaking the psychological 57,000-point barrier. The Yen, conversely, weakened against the dollar, a deliberate feature of Takaichi’s strategy to boost exports. "The market loves certainty, and Takaichi has delivered it in spades," noted a Tokyo-based analyst. "She has the political capital to force through reforms that her predecessors could only dream of."

Key drivers of the rally include:

• Defense Spending: Takaichi’s pledge to double defense spending has sent shares in Mitsubishi Heavy Industries and Kawasaki Heavy Industries skyrocketing.
• Nuclear Restart: Her unapologetic pro-nuclear stance is seen as the solution to Japan’s energy crisis, boosting utility stocks.
• Corporate Governance: A continued push to force companies to unlock value and increase dividends for shareholders.

Global Ripple Effects

For Kenyan investors watching the global dashboard, the events in Tokyo matter. A weaker Yen makes Japanese imports—from Toyota spare parts to heavy machinery—potentially cheaper in dollar terms, though the strengthening US dollar might offset these gains. Furthermore, a resurgent Japan is looking for investment destinations, and Takaichi’s "strategic diplomacy" could see renewed interest in African infrastructure projects to counter Chinese influence.

However, critics warn of an overheating economy. The bond market sold off sharply, sending yields to decade highs, a sign that investors fear inflation might finally spiral out of control. But for now, the bulls are running wild in Kabutocho.

Sanae Takaichi has asked for a mandate to rewrite Japan’s future. The markets have not just given her permission; they are cheering her on with open wallets.