Kathmandu. Tokyo’s Nikkei 225 index rose nearly 5 percent on Monday as Japanese Prime Minister Sane Takeichi’s ruling party won a two-thirds majority in parliamentary elections.

Elsewhere in Europe, Germany’s DAX rose 0.6% to 24,864.59, while France’s CAC 40 rose 0.2% to 8,288.06. Britain’s FTSE 100 also rose 0.3% to 10,399.61.

U.S. futures are also higher for Monday after the U.S. stock market made a strong comeback on Friday. Futures for the S&P 500 rose 0.1 percent, while futures for the Dow Jones Industrial Average rose 0.2 percent. On Friday, the S&P 500 rose nearly two percent, its best day since May. The Dow rose 2.5 percent to beat the 50,000 mark for the first time, while the Nasdaq Composite was up 2.2 percent.

In Tokyo, the Nikkei closed up 2,253.9 percent and the index had earlier hit a new intraday record of 57,337.07. The U.S. dollar weakened slightly to 156.71 yen against the Japanese yen.

Analysts say the election victory gives Prime Minister Takeichi a strong mandate to pursue market-friendly policies. The Liberal Democratic Party (LDP) won 316 of the 465 seats in the lower house, according to the results of vote counting by Japanese public broadcaster NHK. This is the biggest success since the establishment of the party in 1955.

Neil Newman, managing director of Astris Advisory Japan, said it was easier to move policy decisions from a weak government to a government with a strong majority. When the lower house reconvenes in mid-February, the budget is expected to be a top priority to tackle the rising cost of living and sluggish wages.

Stephen Innes, head of SPI Asset Management, said the election results had removed political uncertainty and that the market had reacted “smoothly”.

Other markets in Asia are also strong. South Korea’s Kospi rose 4.1 percent to 5,298.04. Hong Kong’s Hang Seng rose 1.8 percent to 27,027.16 and the Shanghai Composite rose 1.4 percent to 4,123.09. Taiwan’s TYX rose 2 per cent and Australia’s S&P÷ASX 200 rose 1.9 per cent to 8,870.10.

Wall Street’s latest rally has seen a big contribution from chip companies. Nvidia is up 7.8 percent, while Broadcom is up 7.1 percent. However, the S&P 500 is still under pressure on the basis of a few weeks, according to the analysis, due to spending by big tech companies and concerns that AI technology could affect software companies.

In other trading, bitcoin rose 1 percent to below $70,000. Gold rose 1.4 per cent to USD 5,048.90 an ounce and silver by 6.2 per cent to USD 81.64 an ounce.

However, the price of oil has fallen. U.S. crude fell 60 cents to $62.95 a barrel and Brent crude fell 60 cents to $67.45 a barrel. The euro strengthened to trade at $1.1866 against the dollar.