Market Update - February 9, 2026

Overview

The market opened with a calm mood across the Asia-Pacific region, showing modest movements in indices. The Japanese financial markets reacted positively to the recent parliamentary elections, leading to significant changes in various asset classes.

Market Movements

Equities

Japanese equities surged to record highs following the election victory of Prime Minister Sanae Takaichi's Liberal Democratic Party (LDP), which secured 316 out of 465 seats in the lower house. This decisive win is seen as a mandate for fiscal expansion and increased public spending, particularly in defense and technology sectors.

Commodities

Precious metals experienced a rebound, with gold prices rising by 1.60% to surpass USD 5,000 per ounce, while silver saw a significant increase of 5.50%, reaching USD 82 per ounce.

Forex

The foreign exchange market remained relatively stable, with the Japanese yen experiencing initial weakness due to the election results but later stabilizing. The USD/JPY pair was noted at 156.059, down 0.86%.

Government Bonds

Following the election results, Japanese government bonds faced selling pressure as investors anticipated increased debt issuance and stronger economic growth. The market is pricing in a potential reflationary environment due to Takaichi's debt-funded stimulus plans.

Cryptocurrency Market

The cryptocurrency market showed signs of recovery after a dip earlier in the week. Bitcoin was trading around USD 70,400, up 0.25% from previous lows near USD 60,000.

Economic Calendar

Key economic reports are anticipated this week, including delayed labor market data, which is expected to be a significant focus for investors.