TOKYO, Feb 9, 2026 (BSS/AFP) - Japan's benchmark stock index soared more than five percent Monday on the back of Prime Minister Sanae Takaichi's election triumph, with her ruling coalition projected to have won a two-thirds majority in the powerful lower house.

The Nikkei 225 briefly jumped over five percent before settling up 4.9 percent at 56,919 points, as of around 9:30 am (0030 GMT) -- the first time it has climbed above 56,000.

Takaichi's resounding victory paves the way for increased fiscal stimulus and a massive tax cut.

Despite concerns over the fiscal cost of these measures, the yen strengthened, gaining 0.33 percent to 156.72 yen to the dollar after dipping in early trading.

Takaichi vowed Sunday to pursue a "responsive and proactive" fiscal policy.

"We will prioritise the sustainability of fiscal policy. We will ensure necessary investments. Public and private sectors must invest. We will build a strong and resilient economy," she said.

Analyst Kyle Rodda of Capital.com said the ruling Liberal Democratic Party's victory had handed Takaichi "the mandate she was looking for for her big-spending agenda".

Equities are "poised to benefit from higher fiscal spending but interest rates that remain accommodative and negative in real terms", he said.