Berliner Boersenzeitung - Tokyo stocks hit record high after Japanese premier wins vote

After last week's volatility, investors also appeared to be enjoying a return to calm, with precious metals edging up and hopes for political stability in Japan.

Takaichi's resounding victory saw her Liberal Democratic Party take around a two-thirds majority of the lower house, paving the way for increased fiscal stimulus and massive tax cuts.

The election win "boosted the mood for stock markets around the world", said Kathleen Brooks, research director at trading group XTB.

Financial markets may be nervous about Japan's public finances and its gargantuan debt pile if Takaichi decides to cut taxes and boost spending.

But for now investors are upbeat, pushing the benchmark Nikkei 225 above 57,000 points for the first time, and the yen also advanced.

"A big victory was expected but this is probably even more impressive," said Jim Reid, managing director at Deutsche Bank.

"The 'supermajority' has raised the prospects of even more aggressive policy, including fiscal plans," he added.

Hong Kong and Shanghai stock markets also closed higher, and Seoul climbed more than four percent, helped by a six-percent jump in Samsung shares after a report said it would start mass production of its next-generation HBM4 memory chips.

Bangkok added more than three percent after a stunning election victory for caretaker Prime Minister Anutin Charnvirakul's conservative Bhumjaithai Party that boosted hopes for political stability.

In Europe, London started the week slightly lower, while Paris was flat and Frankfurt nudged higher in midday deals.

The pound largely steadied as British Prime Minister Keir Starmer scrambled to shore up his premiership Monday, preparing to face lawmakers furious that his Labour government has become embroiled in the Jeffrey Epstein scandal.

Wall Street ended last week on a positive note, with the Dow Jones Industrial Average surpassing 50,000 points for the first time as traders focused on the prospects for the US economy and possible interest rate cuts from the Federal Reserve.

Economic data coming this week includes US jobs and inflation figures.

Analysts said caution still dominates with regards to the tech sector, which has been hit by worries over the vast sums being invested in AI and doubts about when they will produce returns.

Precious metals returned to stability, with gold at around $5,000 an ounce and silver $80 an ounce after both saw wild swings after smashing record highs.

In other company news, shares in Novo Nordisk rallied around eight percent after a US telehealth chain said it would drop a copycat of the new pill version of its hugely popular weight-loss drug Wegovy.

- Key figures at around 1115 GMT -

London - FTSE 100: DOWN 0.1 percent at 10,356.93 points

Paris - CAC 40: FLAT at 8,273.66

Frankfurt - DAX: UP 0.2 percent at 24,777.66

Tokyo - Nikkei 225: UP 3.9 percent at 56,363.94 (close)

Hong Kong - Hang Seng Index: UP 1.8 percent at 27,027.16 (close)

Shanghai - Composite: UP 1.4 percent at 4,123.09 (close)

New York - Dow: UP 2.5 percent at 50,115.67 (close)

Dollar/yen: DOWN at 156.60 yen from 157.09 yen on Friday

Euro/dollar: UP at $1.1863 from $1.1825

Pound/dollar: DOWN at $1.3614 from $1.3615

Euro/pound: UP at 87.15 pence from 86.82 pence

Brent North Sea Crude: UP 0.3 percent at $68.24 per barrel

West Texas Intermediate: UP 0.4 percent at $63.76 per barrel

(G.Gruner--BBZ)