CNBC Daily Open: Takaichi's victory sends Japan's Nikkei 225 to new highs

• Takaichi's LDP secured a two-thirds supermajority in the Lower House, enabling her to boost spending and suspend some food-related taxes
• The Nikkei 225 crossed 57,000 in early trading for the first time, while the yen strengthened against the dollar
• U.S. markets rallied Friday with the Dow breaking 50,000, the S&P 500 gaining 1.97% back into positive territory for 2026, and tech stocks leading despite Big Tech losing over $1 trillion collectively in the past week

Market Summary: Japan Election Drives Nikkei to Records Amid Global Market Volatility

Japan Political & Market Developments:

Japanese Prime Minister Sanae Takaichi and the Liberal Democratic Party won a decisive electoral victory on Sunday, securing a two-thirds supermajority in the Lower House. The mandate provides broad latitude for her agenda including increased spending and food-related tax suspensions. The Nikkei 225 responded by reaching record highs Monday, crossing 57,000 for the first time, while the yen strengthened to 156.88 per dollar.

U.S. Market Rebound:

U.S. markets staged a sharp Friday rally following tech sector weakness. The Dow Jones closed above 50,000 for the first time, gaining 2.47%. The S&P 500 rallied 1.97%, returning to positive territory for 2026, while the Nasdaq climbed 2.18%. Tech leaders including Alphabet, Amazon, and Meta led the rebound amid what analysts describe as an "AI gold rush."

Big Tech Losses:

Despite Friday's recovery, Big Tech collectively lost over $1 trillion in market capitalization during the prior week, according to FactSet. Amazon alone shed more than $300 billion in market value. Companies affected include Apple, Alphabet, Meta, Microsoft, Nvidia, and Tesla.

Other Key Developments:

• Italian bank UniCredit reported record 2025 profits of €10.6 billion ($12.6 billion), raising revenue and profit guidance
• Hong Kong media tycoon Jimmy Lai sentenced to 20 years under national security law
• Chinese chip designer saw 60% surge on Hong Kong stock exchange debut
• Private credit markets face uncertainty as AI disruption threatens software sector borrowers
• U.K. Prime Minister Keir Starmer faces political pressure over appointments linked to Jeffrey Epstein