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As Japanese Prime Minister Sanae Takai won a historic victory in Sunday's election, the Tokyo stock market soared significantly amid market expectations that the government will increase spending on key industries such as national defense and artificial intelligence. The Nikkei 225 index surged 5% at one point, setting a new record; the broader Topix index also rose 2.6% to reach a new high. Electronic products and bank stocks led the gains. Andrew Jackson, head of Japanese equities strategy at Ortus Advisors, wrote in a report that Takai's victory "far exceeded" initial expectations and "could open the floodgates for her expansionary policies." He expects stocks related to national defense such as Mitsubishi Heavy Industries, as well as aerospace, financial, and food-related stocks, to rise as Takai promises to increase security spending.