Japan’s Takaichi lands landslide win; Nikkei surges, Buffett’s five trading houses gain $2bn in a day
Japan’s new prime minister candidate Sanae Takaichi won a landslide victory in the lower-house election, boosting market confidence in her “Takaichinomics” platform (looser fiscal policy and potential tax cuts). The Nikkei 225 jumped as much as 2.74 intraday to a record above 57,000, breaking the 56,000 and 57,000 psychological levels after a rally that began in January. Foreign capital poured into defense, nuclear, AI and semiconductor stocks; regional peers like Korea’s KOSPI also opened higher. Berkshire Hathaway’s 2019 stakes in Japan’s five major trading houses (Mitsubishi, Mitsui, Itochu, Sumitomo, Marubeni), initially acquired for about $13.8bn, have risen to a market value above $41bn — nearly triple — producing an estimated single-day unrealized gain of about $2bn. Buffett has signaled these holdings are long-term and Berkshire may increase positions. Market drivers include improved policy visibility under Takaichi, prior momentum since the election call, and large institutional buying. For traders: expect heightened liquidity in Japan-related equities and FX, potential sector rotation into defense, energy and semiconductors, and short-term volatility around profit-taking and positioning flows. Key keywords: Nikkei 225, Takaichinomics, Berkshire Hathaway, trading houses, Japan rally.
Bullish
The news is bullish for markets, especially Japan-focused equities and regional risk assets. A decisive political win that increases the probability of expansionary fiscal and tax policies (Takaichinomics), combined with visible large-scale institutional buying (Berkshire Hathaway’s trading-house stake), typically attracts foreign capital and lifts risk appetite. Historical parallels: political-driven rallies (e.g., earlier election-related surges in Japan or stimulus-driven rallies elsewhere) show sharp short-term gains followed by consolidation. For traders this implies: near-term — continued inflows, higher liquidity and volatility, and sector rotation into defense, energy, AI/semiconductors; watch for profit-taking and potential pullbacks after sharp gains. medium-to-long term — if policy expectations persist and corporate earnings benefit, the rally can be sustained, supporting carry trades into JPY weakness and increased allocation to Japanese equities. Risks that could temper the bullish view include unmet policy delivery, global risk-off events, or rapid rate/funding changes that reverse flows.