LGT Navigator

Japanese stocks surge on Takaichi win

Japanese equities surged to fresh record highs on Monday after Prime Minister Sanae Takaichi’s landslide election victory strengthened expectations of a growth‑oriented policy mix. The rally in Tokyo helped lift broader Asia, with major indices trading firmly in positive territory at the start of the week. The upbeat tone followed a strong close on Wall Street on Friday, where renewed risk appetite pushed the Dow Jones Industrial Average above the 50,000-point mark for the first time and supported a rebound in cryptocurrencies. European stocks also ended last week higher. Gold continued to advanced to start the new week, trading around USD 5020 per ounce, while silver was up 4.5% at about USD 81.50 per ounce. Oil prices declined by more than 1% on Monday as assurances from the US and Iran over the weekend that they would continue indirect talks on Tehran’s nuclear programme reduced immediate concerns about supply disruptions in the Middle East.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

Tokyo Japan

Japanese equities rallied to fresh records on Monday after Prime Minister Sanae Takaichi secured a historic election victory, with the ruling Liberal Democratic Party winning a two‑thirds supermajority in the lower house. The Nikkei 225 jumped at open to a record intraday high of 57,629.50 points, but was later trading a bit lower, still advancing more than 4%. Investors expect Takaichi’s growth-focused policy agenda, seen as an extension of Abenomics with looser monetary policy, higher fiscal spending and tax reforms, to support equities over the medium term, even as the yen strengthened modestly and Japanese government bond yields rose. Broader risk appetite lifted other Asian markets, Korea’s Kospi was up 3.9% as technology and chip-related shares rebounded, and Australia’s S&P/ASX 200 was 1.9% higher. Hong Kong’s Hang Seng Index gained 1.8% and mainland China’s CSI 300 was up 1.4%, with India’s Nifty 50 also firmer.

Inflation and US data in the spotlight

This week, markets focus on a packed US data calendar, culminating on Friday with January Consumer Price Index figures, which offer fresh insight into the disinflation trend and its implications for Federal Reserve policy. The US also releases December retail sales on Tuesday, followed by the delayed January labour market report on Wednesday and weekly jobless claims and housing data on Thursday. In Asia, markets watch Wednesday’s January Consumer Price Index and Producer Price Index data from China for signals on domestic demand and ongoing deflationary pressures in the industrial sector. Japan is closed on Wednesday for the National Founding Day holiday, which may temporarily dampen trading volumes in parts of Asian markets. In Europe, attention turns on Thursday to a broad set of UK releases including fourth-quarter gross domestic product, and on Friday to fourth-quarter gross domestic product for the euro area, alongside January inflation data from Spain and Switzerland.

US Dow surges past 50,000 milestone

US equities rebounded strongly on Friday, with renewed risk appetite pushing the Dow Jones Industrial Average for the first time above the psychologically important threshold of 50,000 points, before it closed 2.5% higher at 50,115.67. The broader S&P 500 rose 2% to 6932.30 points but still ended the week slightly lower, while the technology-heavy Nasdaq 100 gained 2.2% on the day yet recorded a 1.9% weekly loss amid concerns over potential losers from the artificial intelligence boom. Shares in online retailer Amazon fell 5.6% after investors balked at plans to spend about USD 200 billion this year on AI, chips, robotics and satellites, even as this spending outlook boosted chipmakers such as Broadcom and Nvidia, which both advanced more than 7%. Risk-on sentiment was also visible in cryptocurrencies, as Bitcoin rebounded from its recent slump and lifted related stocks including crypto investor Strategy and trading platform Coinbase. Bitcoin was trading around USD 70,500 on Monday morning.

Swiss unemployment rises in January

Swiss unemployment increased to 152,280 in January, up 3.4% from December and 12.2% from a year earlier, lifting the unemployment rate by 0.1 percentage points to 3.2% according to data released this week. After adjustment for seasonal factors, however, the number of unemployed fell 1% to 138,451, with the seasonally adjusted unemployment rate edging down to 2.9%. The Swiss Market Index increased 0.3% on Friday.

German trade surplus narrows, output declines

Germany’s calendar-adjusted goods exports rose 2.7% year on year in December, while imports increased 5.6%, which reduced the foreign trade surplus versus the same month a year earlier to 17.1 billion euros, according to data published on Friday by the Federal Statistical Office. For 2025 as a whole, exports grew 1% compared with the previous year, while imports expanded 4.4%, and Germany still recorded an annual trade surplus of 202.8 billion euros, down from 242.9 billion euros in 2024. Industrial production in real terms fell 0.6% year on year in December after calendar adjustment and declined 1.1% over 2025, with weaker output in the automotive and machinery sectors and in energy-intensive industries weighing on overall activity. The Euro Stoxx 50 rose 1.2% on Friday, while Germany’s DAX added 0.9%.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: SECO Swiss consumer sentiment (09:00) and Sentix investor confidence for the eurozone (10:30).

LGT helps you make informed investment decisions

Global economic and market trends at a glance

You can also follow us on Facebook or LinkedIn – or visit Insights and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.