Japan's Landslide Sparks Rally as Gold and Crypto Move - Real Vision: Finance & Investing Recap

Podcast: Real Vision: Finance & Investing

Published: 2026-02-09

Duration: 6 min

Summary

Japan's political stability post-election has triggered a significant rally in its equities market, affecting currency, gold, and crypto. Global markets react cautiously amid geopolitical tensions and anticipated economic data releases.

What Happened

Japan's Nikai 225 index surged nearly 4% to a record high following Prime Minister Sane Takaichi's landslide election victory, giving her party a two-thirds supermajority. This political stability is expected to lead to increased government spending and tax cuts, positively impacting investor sentiment.

Despite the immediate rally, Japan's current account surplus fell below forecasts in December, although the annual surplus was the largest on record due to strong income from overseas investments. The yen strengthened on the news of the election victory.

In the Middle East, tensions between the US and Iran continue to influence the gold market, with prices rising above $5,000 per ounce. Silver also saw gains, extending its rally by 5%.

In the US, equity markets remained muted with traders being cautious ahead of key economic data releases, including jobs figures and inflation reports. The Labor Department's report is expected to show a modest increase in employment and a steady unemployment rate.

The Dow crossed 50,000 points for the first time, while US Treasuries dipped following reports from China urging banks to trim their exposure due to concentration risks and market volatility concerns.

Bitcoin experienced fluctuations, peaking at $72,000 over the weekend due to the positive sentiment from Japan's election results before dipping 4% to $68,000 in early US trading. Meanwhile, South Korea's financial watchdog is increasing oversight of crypto companies to curb IT-related incidents.

The episode also features insights from Andreas Steno and Mikhail Rosenwald on the developments in Japan and Iran, and a fireside chat between Raoul and David Mattin on the exponential age.

Key Insights

• Japan's Nikkei 225 index surged nearly 4% to a record high after Prime Minister Sane Takaichi's landslide election victory, which secured a two-thirds supermajority for her party and is expected to boost government spending and tax cuts.
• Gold prices rose above $5,000 per ounce amid ongoing tensions between the US and Iran, with silver also extending its rally by 5%.
• The Dow crossed 50,000 points for the first time, while US Treasuries dipped following reports of China urging banks to reduce exposure due to concentration risks and market volatility.
• Bitcoin peaked at $72,000 over the weekend due to positive sentiment from Japan's election results before dipping 4% to $68,000, as South Korea's financial watchdog increases oversight of crypto companies.