BANGKOK (AP) – On Monday, Tokyo's Nikkei 225 share index experienced a significant surge, climbing as much as 5% to reach a record high. This jump in the stock market was driven by the recent success of Japanese Prime Minister Sanae Takaichi's governing Liberal Democratic Party (LDP), which secured a two-thirds supermajority in the parliamentary elections. Takaichi's commitment to market-friendly policies is anticipated to invigorate Japan’s sluggish economy, making her a focal point of optimism among investors.

The positive sentiment was not limited to Japan; markets across Asia also showed notable gains. South Korea's Kospi surged by 4% while various other benchmarks rose by more than 1%. This bullish trend emerged following a robust rebound in U.S. stock markets on Friday. Technology stocks, in particular, recovered a significant portion of their previous losses, contributing to an impressive day on Wall Street. The S&P 500 saw a rally of 2%, marking its best day since May, while the Dow Jones Industrial Average surged 1,206 points or 2.5%, surpassing the 50,000 mark for the first time.

The positive market sentiments were buoyed by a rebound in tech shares, alongside the strong performance in the U.S. equities market and various other favorable developments. NHK reported that the LDP, led by Takaichi, successfully secured 316 seats in the 465-member lower house of Japan's parliament, far exceeding the absolute majority threshold of 261 seats. This result represents a record achievement for the LDP since its establishment in 1955, surpassing the previous high of 300 seats acquired in 1986 under former Prime Minister Yasuhiro Nakasone.

Takaichi's inaugural major task upon the lower house's reconvening in mid-February will involve addressing a delayed budget bill intended to fund economic measures addressing rising costs and sluggish wages. Stephen Innes of SPI Asset Management noted that the election outcome has diminished political ambiguity in Japan, which is typically viewed favorably by the markets. He suggested that Takaichi's victory grants her greater freedom in decision-making, minimizing the need to negotiate compromises for every legislative decision.

By late morning trading, the Nikkei 225 was up 4.7% at 56,788.85, having earlier exceeded the 57,000 threshold to set a new record. The Kospi increased by 4.3%, reaching 5,308.84. Conversely, the dollar saw a slight depreciation against the Japanese yen, trading at 156.85 yen, down from 157.19 yen late Friday. Other Asian markets also demonstrated resilience; Hong Kong’s Hang Seng index rose by 1.5% to 26,963.25, while the Shanghai Composite index gained 1.2% to 4,112.92. Additionally, Taiwan's Taiex climbed by 2.5%, and Australia’s S&P/ASX 200 surged by 1.9% to 8,873.60.

U.S. futures hinted at further optimism in early trading on Monday, with the S&P 500 futures up by 0.1%, and Dow industrial futures increased by 0.2%. Notably, Friday's surge was significantly influenced by computer chip companies, with Nvidia rising by 7.8%, while Broadcom's shares climbed by 7.1%. Despite the gains, the S&P 500 has faced challenges, experiencing its third losing week in the last four, fueled by concerns over increased expenditures by major technology firms and competition implications from the rise of artificial intelligence.

Meanwhile, Bitcoin stabilized after a prolonged decline that had seen it drop over half its record high price established in October. The cryptocurrency rebounded above $70,000, having briefly dipped below $60,000 on Thursday. In the commodities market, prices for metals experienced a period of relative calm after previous volatility; gold increased by 1.8%, settling at $4,979.80 per ounce, while silver gained 0.2%. In early Monday trading, gold climbed further by 0.7% and silver saw a significant increase of 4.8%.

On the oil front, U.S. benchmark crude oil prices declined by 55 cents to $63.00 per barrel, while Brent crude, the international benchmark, fell by 66 cents to $67.39 per barrel. The euro also showed strength, rising to $1.1820 from $1.1812. Overall, the market dynamics signal a robust response to recent political developments in Japan, along with the recovery in the U.S. markets.