Asia markets rally with Nikkei at record high after Japan election

February 09, 2026 (MLN): Asian markets advanced sharply on Monday, tracking a strong rebound in U.S. technology stocks late last week.

Meanwhile, Japanese shares soared to fresh record highs following a decisive election victory for Prime Minister Sanae Takaichi’s ruling coalition.

Risk appetite improved across the region after Wall Street staged a broad recovery on Friday, with major U.S. indexes clawing back a portion of the steep losses seen earlier amid concerns over rapid shifts in artificial intelligence-related technologies.

U.S. stock index futures also traded modestly higher during Asian hours, reinforcing positive momentum, Reuters reported.

Japan’s benchmark Nikkei 225 surged as much as 4.4% to a new all-time high as investors welcomed political certainty following Sunday’s lower-house election.

Prime Minister Takaichi’s coalition secured an overwhelming majority, strengthening expectations of policy continuity and economic stimulus.

The broader TOPIX index also climbed to a record peak, gaining 3.4% to 3,825.67 points.

Positive sentiment around U.S. chipmakers and artificial intelligence-linked stocks spilled over into Asian markets at the start of the week.

South Korea’s KOSPI index jumped nearly 5%, rebounding from sharp losses over the previous two sessions.

Shares of Samsung Electronics rose more than 5% after reports indicated the company is set to begin mass production of its next-generation HBM4 memory chips later this month.

Rival SK Hynix also gained over 5%, supported by optimism around high-bandwidth memory demand.

In Greater China, Hong Kong’s Hang Seng Index advanced 2%, while the Hang Seng TECH Index added 1.5%.

Mainland Chinese markets also moved higher, with both the Shanghai Composite and the CSI 300 index rising about 1.3%.

Elsewhere, Australia’s S&P/ASX 200 climbed 2%, Singapore’s Straits Times Index gained 1%, and futures linked to India’s Nifty 50 edged slightly higher as investors assessed developments surrounding the U.S.-India trade framework.

Looking ahead, investors across Asia are closely watching key U.S. economic indicators due later this week, including delayed employment and inflation data, which could shape expectations for interest rates and global growth.

Despite Monday’s rally, market participants remain cautious after last week’s sharp volatility driven by technology stocks and shifting narratives around artificial intelligence.

While the rebound has provided near-term relief, investors continue to assess whether recent gains can be sustained amid an evolving macro and tech landscape.

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