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Japan's Nikkei at all-time peak ahead of PM vote

Published: 21 Oct. 2025, 11:42

Sanae Takaichi, the newly elected leader of Japan's ruling party, the Liberal Democratic Party (LDP), attends a press conference after the LDP presidential election in Tokyo on Oct. 4. [REUTERS/YONHAP]

Japan's Nikkei share gauge continued its record run on Tuesday, ahead of a parliamentary vote expected to confirm fiscal dove Sanae Takaichi as the nation's next prime minister.

The Nikkei 225 Index climbed 1 percent to 49,663.45 in early trade, and is poised for a record close, if the current momentum persists. The broader Topix gauge was up 0.6 percent.

The nation's stocks surged on Monday after Takaichi's ruling Liberal Democratic Party (LDP) secured a new coalition partner in the Japan Innovation Party, known as Ishin, to firm up her support in the Diet.

The Nikkei hit successive highs earlier this month on expectations of further stimulus after Takaichi won a vote to lead the LDP. But her assent to the prime minister's seat was delayed after long-time political partner Komeito split from the LDP's coalition.

A parliamentary vote to choose the premier is scheduled for the afternoon. Market attention now turns to who may fill out Takaichi's cabinet for signs of how the new government will approach spending and debt management.

Takaichi has finalized a plan to appoint former regional revitalization minister, Satsuki Katayama, as finance minister, broadcaster FNN reported on Tuesday.

Reaction in the Japanese government bond (JGB) market was muted early on. The 10-year JGB yield fell 0.5 basis point (bp) to 1.66 percent, while the two-year yield fell 1 bp to 0.935 percent.

Reuters