Morning wrap (09.02.2026)

Markets in the Asia–Pacific region opened in calm mood, with only modest moves across indices. Changes in Chinese indices are limited to around ±0.25%, Australia’s AU200.cash gains 0.80%, and Japan’s JP225 rises 0.15% following the results of Japan’s parliamentary elections.

In the FX market, the session is also relatively quiet, with the exception of the Japanese yen, where volatility is being driven by the victory of Sanae Takaichi’s Liberal Democratic Party.

Precious metals are rebounding slightly. Gold gains 1.60%, returning above USD 5,000 per ounce, while silver jumps 5.50% to USD 82 per ounce.

Japanese financial markets reacted sharply to Prime Minister Sanae Takaichi’s crushing election victory. Equities surged to new record highs, government bonds came under selling pressure, and the yen initially weakened markedly before stabilising later in the session.

Takaichi’s Liberal Democratic Party secured 316 of 465 seats in the lower house, with early projections briefly pointing to as many as 328 seats, marking the most decisive post-war victory for a ruling party.

Investors welcomed the prospect of fiscal expansion, tax relief, and increased public spending — particularly in defence, technology, and other strategic sectors.

Japanese government bonds were sold off as investors began to price in heavier debt issuance and stronger nominal economic growth. Takaichi’s programme is set to rely on debt-funded stimulus and could reignite reflationary dynamics, structurally pushing yields higher.

The cryptocurrency market has recovered from Thursday’s losses, which had pushed Bitcoin down toward the USD 60,000 area. Bitcoin is currently up 0.25%, trading around USD 70,400.