Asian Markets Soar: Japan's Nikkei Hits Record High on 'Sanaenomics' Victory

• Asian markets surged Monday, with Japan's Nikkei jumping 4.2% to an all-time high after Prime Minister Sanae Takaichi's decisive victory fueled expectations for more reflationary policies.
• The strong government majority in Japan paves the way for increased spending and tax cuts, with analysts anticipating further measures under 'Sanaenomics'.
• A rally in chip stocks, including Nvidia and Advanced Micro Devices, and bargain hunting in undervalued momentum plays like silver, bolstered sentiment.
• Investors are increasingly betting on a U.S. Federal Reserve rate cut by June, with upcoming economic data on jobs, inflation, and spending expected to reinforce the case for stimulus.
• Concerns remain about the massive AI spending, with analysts suggesting a rotation from AI spenders to beneficiaries and a shift from U.S. exceptionalism to global rebalancing.