TOKYO: Japan’s Nikkei share gauge surged to a record high on Monday after political negotiations appeared to put fiscal expansionist Sanae Takaichi on a clearer path to becoming the country’s next prime minister.
The blue-chip Nikkei 225 Index jumped as much as 2.6 percent to 48,805.03, an all-time intraday high. The broader Topix rose 1.9 percent.
The Nikkei hit record highs earlier this month after Takaichi won a run-off to lead the ruling Liberal Democratic Party. But a Diet vote to install her as premier was delayed after she failed to heal a rift with a long-time coalition partner.
After negotiations last week, the LDP and the Japan Innovation Party, known as Ishin, have broadly agreed to form a coalition, the Kyodo news agency reported on Sunday, with Ishin lawmakers pledging to support Takaichi as prime minister in parliament on Tuesday.