Global markets today opened on a strong note, led by Japan, where equities staged a sharp rally after Prime Minister Sanae Takaichi secured a decisive victory in the national election. The outcome lifted market sentiment across Asia, pushing key indices to record levels and setting a positive tone for global risk assets.
The mood was clear from the opening bell — confidence was back, and investors were ready to price in continuity and stability.
Market Performance: Japan Leads the Global Markets Rally
Japan was the clear standout in global markets today, with benchmark indices recording their strongest gains in months.
- Nikkei 225 surged as much as 5.7%, touching a fresh all-time high of 57,337.07
- Topix index climbed up to 3.4%, also marking a new record
- The rally was broad-based, led by technology and machinery stocks
- Several chip-equipment and manufacturing stocks jumped over 10% during the session
This sharp move took Japanese equities back to levels last seen in April — and then pushed well past them.
Main News: Election Result Sparks Fresh Optimism
At the heart of today’s global markets movement was Japan’s political outcome. Prime Minister Sanae Takaichi’s ruling coalition secured a commanding majority in Sunday’s lower-house election.
The result gave markets clarity.
A clear mandate often translates into smoother policy execution, and that’s exactly what investors reacted to. The election removed uncertainty and revived expectations of steady government-led spending across priority sectors.
As trading unfolded, stocks linked to government-driven initiatives moved first and fastest.
Sector Action: Where the Money Flowed?
The rally wasn’t random. It followed a clear pattern, reflecting themes already visible in recent months.
Sectors that moved strongly included:
- Technology and advanced manufacturing
- Semiconductor-linked companies
- Machinery and industrial stocks
- Defence-related companies
- Construction and real estate names
Defence firms showed notable strength:
- IHI Corp. rose up to 7.2%
- Other major heavy-industry players also posted solid gains
Satellite operator Sky Perfect JSAT Holdings emerged as one of the top performers on the Topix index, while construction-related stocks followed close behind.
Currency and Bond Market Reaction
The momentum in global markets today wasn’t limited to equities.
- The Japanese yen strengthened to 156.88 against the US dollar
- 10-year Japanese government bond yields rose nearly 4 basis points to 2.274%
- 20-year JGB yields climbed about 3 basis points to 3.158%
The move higher in bond yields reflected a shift in expectations around fiscal policy and long-term government spending.
Asian Markets Today: Broad-Based Strength
Japan’s rally set the tone for other Asian markets today, with most major indices trading in positive territory.
- South Korea’s Kospi jumped 4.15%
- Kosdaq index gained 2.97%
- Australia’s S&P/ASX 200 rose 1.65% in early trade
- Hong Kong Hang Seng futures stood at 27,053, up from the previous close of 26,559.95
The gains reflected improving risk sentiment across the region, supported by strong cues from both Japan and the US.
US Stock Market Today: Tech Bounce Lifts Indices
Positive sentiment in global markets today followed a strong close on Wall Street last week.
On Friday:
- Dow Jones Industrial Average surged 1,206.95 points or 2.47% to close at 50,115.67
- S&P 500 rose 1.97%, ending at 6,932.30
- Nasdaq Composite gained 2.18%, settling at 23,031.21
The rally marked:
- The Dow’s first-ever close above 50,000
- The S&P 500 moving back into positive territory for 2026
Technology stocks led the rebound after facing heavy selling pressure in previous sessions. Digital assets also recovered, with Bitcoin bouncing back after a sharp decline from its October peak last year.
Company and Political Update
Adding to the global markets narrative, US President Donald Trump publicly congratulated Prime Minister Sanae Takaichi on her election victory through a post on TruthSocial, acknowledging her leadership and the strong voter turnout in Japan.
The message reinforced the perception of political continuity between key global economies, further supporting investor confidence.
Summary: What Global Markets Today Are Telling Us?
Global markets today are trading with renewed confidence.
Japan’s decisive election result acted as a trigger, pushing equities, bonds, and currencies into motion. Asian markets followed the lead, while US equities provided a solid backdrop after a strong weekly close.
Key takeaways:
- Japan remains the focal point of global markets momentum
- Political clarity boosted risk sentiment
- Equity, currency, and bond markets moved in sync
- Broader Asian markets reflected the positive spillover
- Wall Street’s rebound helped reinforce the global tone
As the week unfolds, global markets today reflect one clear theme — stability is being rewarded, and clarity is driving capital flows.
Source: Livemint
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