TOKYO, Oct 20, 2025 (BSS/AFP) - Japan's Nikkei 225 index jumped more than three percent on Monday following news that the country's ruling party will sign a new coalition deal, paving the way for Sanae Takaichi to become prime minister.

"Expectations of a Takaichi administration have risen, and that's fueling stock buying on hopes of her proactive fiscal policies," said Yutaka Miura, senior technical analyst at Mizuho Securities, Bloomberg reported as the Nikkei rose 3.01 percent to 49,011.20 points.