Prime Minister Sanae Takaichi, leader of the ruling Liberal Democratic Party (LDP), addresses the media at the Liberal Democratic Party headquarters in Tokyo on February 8, 2026, the day of the general election.
Kim Kyung Hoon | Anadolu | Getty Images
Japan’s Sanae Takaichi and her ruling Liberal Democratic Party won an overwhelming majority in Sunday’s general election, meaning the party holds more than two-thirds of the seats in the House of Representatives and returning him as prime minister.
The result gives Mr. Takaichi wide latitude to pursue his agenda, including increasing spending and suspending some food-related taxes. Japanese stocks rose to record highs on Monday, but circle The dollar rose to $156.88, reflecting investors’ renewed confidence after the election results.
This optimism comes after a sharp rebound in U.S. markets on Friday. Nvidia, broadcomand oracle He led the charge.
“We’re in a gold rush right now with the advent of AI,” said Gabriel Shahin, founder of Falcon Wealth Planning. “There are funds being deployed…the merry-go-round (of transferring funds) just scares people sometimes.”
This increase led to an increase in major indicators. of Dow Jones Industrial Average It rose 2.47% and closed above 50,000 for the first time. of S&P500 After falling into negative territory after Thursday’s close, the stock rose 1.97% and turned positive heading into 2026. Nasdaq Composite It rose by 2.18%.
Italian banks in Europe unicredit recorded its highest ever annual net profit of 10.6 billion euros ($12.6 billion) in 2025. Commerzbank and alpha bank. The company also raised its revenue and profit forecasts for this year. Find out more as CEO Andrea Orcel talks about the bank’s earnings on ‘Squawk Box Europe’.
Meanwhile, political pressure on British Prime Minister Keir Starmer continued to mount. Morgan McSweeney, Mandelson’s chief of staff, resigned on Sunday, taking responsibility for advising Starmer to appoint Peter Mandelson as ambassador to the United States, despite Mandelson’s past ties to sex offender Jeffrey Epstein.
As Mr Starmer’s public support dwindles, some members of his Labor Party are openly questioning his political future, a far cry from the unifying force shown by Japan’s Mr Takaichi on Sunday.
What you need to know today
In total, Big Tech companies have lost more than $1 trillion in valuation over the past week, according to FactSet data. The decline has hit Amazon, microsoftNvidia, meta, google And oracle. Amazon alone has lost more than $300 billion in market capitalization.
The names of some of Silicon Valley’s biggest names have been discovered in files related to sex offender Jeffrey Epstein recently released by the US Department of Justice. In addition to Elon Musk and Bill Gates, the list also includes Google co-founder Sergey Brin, venture capitalist Peter Thiel, and LinkedIn co-founder Reid Hoffman.
Jimmy Lai was sentenced on Monday to 20 years in prison in one of the most high-profile prosecutions under a national security law imposed by China. The media tycoon who founded the pro-democracy newspaper Apple Daily was found guilty in December of charges including collusion with foreign forces.
The Dow Jones Industrial Average closing price exceeded 50,000 for the first time. Major U.S. indexes rose on Friday as tech stocks rebounded. Asia-Pacific markets were mostly up on Monday. Japanese Nikkei Stock Average In early trading, the index surpassed the 57,000 level for the first time. Chinese chip design company Montage Technology soared about 60% upon listing on the Hong Kong Stock Exchange.
(PRO) A tech giant was sold off in China last week. But analysts say the reasons behind the move are different from those in the United States.
And finally…
Private credit worries resurface in $3 trillion market as AI puts pressure on software companies
Private credit markets are facing new uncertainties as AI-powered tools begin to put pressure on software companies, a key group of private lender borrowers. Shares of asset managers with large private credit franchises fell last week as investors worried that AI could upend borrowers’ business models, straining cash flow and ultimately increasing default risk.
These developments highlight the growing anxiety surrounding the private credit market. The company now needs to prepare for the impact of AI disruption on the software industry, which is highly exposed to acquisitions with opaque and illiquid financing, market participants said.
— Li Yingshan
