Japanese Prime Minister Sanae Takaichi secured a historic victory in the Feb. 8 lower house election, cementing her position as the country’s most powerful postwar leader.

Her Liberal Democratic Party (LDP) won 316 of 465 seats, giving it a two-thirds supermajority, while the ruling coalition captured 352 seats, the largest postwar single-party haul in Japanese history.

Takaichi, the nation’s first female premier, had staked her tenure on the snap election, promising to resign if her coalition failed to win. The gamble paid off just seven months after the LDP lost control of both houses, ending a three-election losing streak and consolidating her authority over the party.

Markets responded sharply. The Nikkei 225 surged 5.7 percent, the most since April, while 10-year government bond yields jumped to 2.275 percet. The yen weakened, trading around 157 per dollar before trimming losses, reflecting investor expectations that Takaichi will pursue aggressive fiscal stimulus, including a temporary suspension of the food sales tax, while potentially slowing the pace of Bank of Japan rate hikes.

Takaichi’s supermajority also revives the long-dormant debate over constitutional amendment, signaling a potential shift in Japan’s defense and foreign policy. Analysts say her victory provides political stability and predictability that markets favor, but they caution that her plans particularly tax suspensions could further weaken the yen and push bond yields higher, creating a delicate balancing act for the BOJ.

“The LDP’s landslide gives Takaichi a strong hand to reshape economic and foreign policy,” said Taro Kimura, Bloomberg economist. “She can now move swiftly to implement policies anchored in her conservative, distinctly personal brand of leadership.”

The main opposition, the Centrist Reform Alliance, won only 49 seats, leaving it struggling to challenge the LDP. Takaichi’s decisive win consolidates her authority, sets the stage for bold fiscal and policy initiatives, and reinforces investor confidence in a stable, predictable Japanese government.