Japan’s stock market scaled new heights and borrowing costs rose after prime minister Sanae Takaichi’s election win.
The Nikkei 225, which features Toyota, Sony and Nintendo, rose as much as 5.7 per cent before closing up nearly 4 per cent.
The yield on ten-year government bonds neared 2.3 per cent as it headed back towards last month’s 27-year highs.
Takaichi’s plans to cut tax and stimulate the economy have pushed yields higher amid fears of extra borrowing and spending.
But her win boosted the stock market as investors bet on increased corporate investment and profits.
Analysts said bonds and the yen will be under fresh pressure if investors become worried about her tax and spending plans.
Trusted: Japanese Prime Minister Sanae Takaichi’s election win has boosted the stock market as investors bet on increased corporate investment and profits
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