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

Events in Japan helped boost sentiment across Asia, but Europe's top markets were mixed and Wall Street opened modestly lower after Friday's rally saw the Dow push above 50,000 points for the first time, following a volatile week when tech stocks take a hammering.

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 edged lower, Paris was flat and Frankfurt edged higher.

The pound rose even 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.

In New York, Wall Street's main indices dipped at the opening bell.

The Dow slipped 0.2 percent but stayed above 50,000 points.

"Things are starting on a much less ebullient note this morning," said Briefing.com analyst Patrick O'Hare.

"Some may attribute that to post-Super Bowl grogginess, but it has the feel simply of being a consolidation trade after Friday's big comeback."

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 a little below $80 an ounce after both saw wild swings after smashing record highs.

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

In other company news, shares in Novo Nordisk rallied nearly 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 1440 GMT -

New York - Dow: DOWN 0.2 percent at 50,018.06 points

New York - S&P 500: DOWN 0.2 percent at 6,915.70

New York - Nasdaq Composite: DOWN 0.4 percent at 22,824.12

London - FTSE 100: DOWN 0.3 percent at 10,335.71

Paris - CAC 40: FLAT at 8,275.55

Frankfurt - DAX: UP 0.4 percent at 24,824.12

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)

Dollar/yen: DOWN at 155.59 yen from 157.09 yen on Friday

Euro/dollar: UP at $1.1917 from $1.1825

Pound/dollar: UP at $1.3647 from $1.3615

Euro/pound: UP at 87.33 pence from 86.82 pence

Brent North Sea Crude: DOWN 0.4 percent at $67.75 per barrel

West Texas Intermediate: DOWN 0.5 percent at $63.22 per barrel

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(H.Schneide--BBZ)