The Nikkei 225 briefly jumped over 5% before settling up 4.9% at 56,919 points, as of around 12.30am — 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% 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.