Record: After the Liberal Democratic Party's overwhelming victory, the Nikkei opened sharply higher and continued its upward trend! While the Nikkei opened higher, Bitcoin experienced a slight upward spike, but failed to follow suit, instead returning to its pre-Nikkei opening price level. Any experienced traders have an interpretation? Does this Nikkei surge reflect a definite expectation of yen depreciation?

AI Interpretation: The strong rise in the Nikkei index was mainly driven by strong market bets on a depreciating yen following Sanae Takashi's strengthening of her leadership. Takashi's landslide victory for the Liberal Democratic Party cleared the way for aggressive fiscal stimulus, increased government spending, and tax cuts—measures that typically exacerbate Japan's debt burden and force the Bank of Japan to maintain ultra-loose monetary policy. This will push up inflation and depress the yen, which is extremely beneficial to the many export-oriented companies (automobiles, electronics, etc.) in the Nikkei, as their overseas earnings will significantly increase in yen. Market optimism about political stability and the "reflation trade" propelled the index to a record high of over 57,000 points during the day (according to real-time reports). However, bond sell-offs caused sharp yen fluctuations (it depreciated to nearly 159 yen/USD at one point, before recovering to the 156-157 range amid expectations of potential intervention in Tokyo).