Japan’s New PM Takaichi Boosts Crypto, Nikkei Hits Record

The election of Sanae Takaichi as Japan’s new prime minister has triggered an immediate and dramatic market response, with the country’s benchmark Nikkei index soaring to an unprecedented close of 47,734.04 on Monday. This 4.75% surge represents the most significant single-day gain following a political transition in recent Japanese history, reflecting investor enthusiasm for Takaichi’s economic vision. The rally began immediately after her Saturday election victory and positions her to become Japan’s first female prime minister when she officially takes office on October 15.

Market analysts attribute this explosive response to Takaichi’s clearly articulated pro-growth platform, which industry watchers told Cointelegraph could drive renewed risk appetite among Japanese investors. Her economic stance, characterized by support for low interest rates, tax cuts, and large-scale economic stimulus, has resonated strongly with voters grappling with a weakening yen. The immediate market validation through the Nikkei’s record performance suggests institutional confidence in her ability to implement these policies effectively.

Sanae Takaichi distinguished herself during the campaign as the only candidate proposing both a major spending package and looser monetary policy, creating a comprehensive economic stimulus approach that addresses multiple pressure points in the Japanese economy. Her platform directly confronts the challenges posed by the weakening Japanese yen while positioning the country for accelerated growth through aggressive fiscal and monetary measures. This dual approach marks a significant departure from previous administrations and has been particularly well-received by market participants.

The incoming prime minister’s support for maintaining low interest rates aligns with her broader vision of stimulating economic activity through accessible capital and reduced borrowing costs. Combined with proposed tax cuts, these policies create an environment conducive to both corporate expansion and individual investment. Industry observers note that this economic framework specifically benefits risk assets, as lower yields on traditional investments push investors toward higher-return opportunities, including emerging asset classes like cryptocurrencies.

According to industry watchers who spoke with Cointelegraph, Takaichi’s election victory may drive a renewed wave of risk appetite among Japanese crypto investors. The pro-growth policies that propelled the Nikkei to record highs create a favorable macroeconomic backdrop for digital assets, as investors seeking higher returns often allocate to cryptocurrencies during periods of monetary expansion and fiscal stimulus. The immediate positive reaction in traditional markets suggests that similar momentum could develop in crypto markets as Takaichi’s policies take effect.

The weakening yen, which Takaichi’s policies aim to address, has historically driven Japanese investors toward assets that can preserve value against currency depreciation. Cryptocurrencies have increasingly served this function for Japanese investors, and the incoming administration’s economic approach may accelerate this trend. The combination of loose monetary policy, fiscal stimulus, and currency concerns creates a powerful catalyst for crypto adoption among both retail and institutional investors in Japan.

Market participants will be closely watching the implementation of Takaichi’s policies after she takes office on October 15, particularly her proposed major spending package and monetary policy adjustments. The initial market reaction provides strong indication that her administration could mark a turning point for risk asset performance in Japan, with cryptocurrencies positioned to benefit from both the macroeconomic environment and shifting investor psychology toward growth-oriented investments.