Asia-Pacific markets traded firmly higher on Monday, led by a surge in Japanese equities after Prime Minister Sanae Takaichi secured a decisive election victory that strengthens her government’s mandate.
By 11:40 am AEDT (12:40 am GMT), Japan’s Nikkei 225 jumped 5% to reach a fresh record high, while Australia’s S&P/ASX 200 climbed 1.6% and South Korea’s KOSPI 200 advanced 4.4%
Japan’s ruling Liberal Democratic Party captured a two-thirds supermajority in the 465-seat lower house, according to public broadcaster NHK, marking a landmark result for Takaichi.
The outcome grants the administration greater scope to implement policy initiatives without relying on coalition partners.
United States President Donald Trump congratulated Takaichi in a post on Truth Social, writing: “She is a highly respected and very popular Leader. Sanae’s bold and wise decision to call for an Election paid off big time … The wonderful people of Japan, who voted with such enthusiasm, will always have my strong support.”
Economic data from Japan, however, painted a more subdued picture. The Ministry of Finance reported a current account surplus of ¥728.8 billion in December, down 32% year-on-year and below expectations for a ¥1.060 trillion surplus. The figure followed a revised surplus of ¥3.674 trillion in November.
Imports rose 3.7% on year to ¥9.808 trillion, while exports increased 4.5% to ¥9.943 trillion, resulting in a trade surplus of ¥134.9 billion.
In Australia, household spending fell 0.4% in December 2025 on a seasonally adjusted basis, according to the Australian Bureau of Statistics (ABS). The decline followed gains of 1% in November and 1.4% in October, when major sales events and cultural activities boosted consumption.
On an annual basis, household spending remained 5.0% higher compared with December 2024.
Tom Lay, ABS head of business statistics, said: “Household spending declined in December. We saw high spending in October and November, which had major sales and cultural events boost spending.
“The fall in December indicates that households brought forward purchases during sales events in October and November.”
Elsewhere, U.S. markets ended last week on a strong note. The Dow Jones Industrial Average rose 2.5% on Friday, while the S&P 500 gained 2% and the Nasdaq Composite advanced 2.2%.
In commodities, Brent crude added 0.7% to settle at US$68.05 per barrel. Spot gold climbed 3.9% to close at US$4,964.62 per ounce.
Chinese markets were weaker on Friday, with the Shanghai Composite slipping 0.3% to 4,065.6 and the CSI 300 falling 0.6% to 4,643.6.
Hong Kong’s Hang Seng Index declined 1.2% to 26,560.0, while India’s BSE Sensex rose 0.3% to 83,580.4.
European markets finished higher, with the UK’s FTSE 100 gaining 0.6% to 10,369.8, Germany’s DAX rising 0.9% to 24,721.5 and France’s CAC 40 advancing 0.4% to 8,273.8.
