Japanese Prime Minister Fumio Kishida has finally declared victory for the Liberal Democratic Party (LDP) to remain in power in the country.
By winning more than 233 seats in the lower house in the election held on Sunday, Kishida was able to retain his position as the Prime Minister of Japan which he held for the past month.
The LDP has dominated Japanese politics for decades, but recently the party received criticism for its handling of the coronavirus outbreak in the country.
This has led some to argue that the LDP may have to rely on its coalition partners to gain a majority. However, the party's vote was unexpected by winning 261 seats, exceeding the parliamentary majority of 233 seats.
In today’s trading session, Japan’s Nikkei 225 stock index closed 2.6% higher, supported by investor confidence that the LDP’s direct majority means Kishida’s economic stimulus plan will be passed smoothly through parliament.
Before the election, PM Kishida had promised to spend trillions of yen to help support the world's third -largest economy in recovery from a coronavirus outbreak.
Meanwhile, the yen weakened to a 3 -year low against the US dollar following Kishida's victory, as well as being weighed down by higher US bond yields.
