Key Points

• Markets Eye Data-Heavy Week After Dow Milestone: U.S. futures edge higher as investors brace for key macro releases following the Dow’s close above 50,000 and a broad rebound across equities.
• Takaichi Win Triggers Japan Market Surge: Japanese stocks soared over 5% after Prime Minister Sanae Takaichi secured a supermajority, fueling expectations for pro-growth reforms and fiscal stimulus.
• Montage Tech Soars 50% in IPO Debut: Chinese chipmaker Montage Technology rallied in its Hong Kong debut, highlighting investor appetite for AI-linked hardware and renewed confidence in China’s tech listings.
• LDP’s Majority Win Bolsters Policy Continuity: Japan’s ruling party victory removes political uncertainty, paving the way for Takaichi to advance structural reforms and defense expansion.

February Economic Calendar

Market Edges Higher Ahead of Key Economic Data

U.S. stock futures ticked up Sunday night as markets looked past last week’s volatility and prepared for a slate of pivotal economic reports, including the delayed January jobs report, consumer price index, and retail sales data. The prior week saw a dramatic rebound, with the Dow Jones Industrial Average closing above 50,000 for the first time, while the S&P 500 and Nasdaq posted strong gains.

Broad sector participation supported the rally, led by chipmakers and technology names, while Bitcoin stabilized after sharp declines. Investors remain cautious but optimistic as earnings results and macroeconomic indicators come into sharper focus during the week ahead.

Japan Stocks Rally as Takaichi Secures Historic Mandate

Japanese equities rallied sharply after Prime Minister Sanae Takaichi’s Liberal Democratic Party secured a historic landslide victory in the February 8 snap election, delivering a supermajority and renewed political clarity. The Nikkei 225 surged more than 5% to record highs as investors priced in accelerated fiscal stimulus, tax relief, and pro-growth reforms.

At the same time, Japanese government bonds weakened and the yen showed heightened volatility amid shifting expectations for monetary and fiscal policy coordination. Takaichi’s decisive win reduces political uncertainty and strengthens the outlook for Japanese risk assets.

Montage Technology IPO Sparks Rally in Hong Kong Tech Market

Shares of Chinese chip designer Montage Technology surged more than 50% in their Hong Kong Stock Exchange debut, opening well above the HK$106.89 offer price after the company raised HK$7.04 billion (approximately $900 million) in a heavily oversubscribed IPO.

As the world’s largest memory interconnect chip supplier, Montage attracted strong interest from global cornerstone investors. The proceeds will support research, strategic investments, and commercial expansion amid rising demand for data-center and AI infrastructure. The strong debut signals renewed institutional confidence in Chinese technology listings and provides an early boost to Hong Kong’s capital markets in 2026.

Takaichi’s LDP Clinches Outright Majority, Paving Way for Policy Push

Japan’s ruling Liberal Democratic Party, led by Prime Minister Sanae Takaichi, secured an outright parliamentary majority in the snap election, according to NHK projections. The outcome significantly strengthens Takaichi’s mandate and clears the path for bold policy initiatives.

Planned priorities include economic revitalization, tax reform, and expanded defense spending. Financial markets reacted positively, with investor sentiment buoyed by expectations of political stability and faster fiscal deployment. The result removes a key overhang for Japanese assets and reinforces the country’s position as a regional bright spot amid global volatility.

Conclusion

This week’s developments reflect growing investor confidence amid shifting political and macroeconomic dynamics. Japan’s equity markets surged following Prime Minister Takaichi’s decisive election victory, signaling potential for meaningful fiscal initiatives and structural reform.

Meanwhile, Montage Technology’s strong Hong Kong debut underscores robust demand for AI- and semiconductor-related exposure despite ongoing geopolitical tensions. In the United States, markets enter a data-driven week following the Dow’s historic close above 50,000, with inflation and labor data set to influence interest-rate expectations. Overall, leadership clarity and innovation momentum are reinforcing optimism across global equity markets heading into mid-February.

Investment Insights

• Japan Exposure Gains Appeal: Takaichi’s decisive mandate and pro-growth agenda support continued upside in Japanese equities, particularly across financials, infrastructure, and defense sectors.
• AI Hardware Demand Supports Semiconductor Bets: Montage Technology’s IPO success reinforces investor conviction in chipmakers tied to AI infrastructure and data-center growth.
• U.S. Data Will Drive Rate Expectations: Upcoming CPI and labor reports will be critical in shaping the Federal Reserve’s policy outlook, with implications for rate-sensitive sectors.
• Political Clarity Boosts Risk Sentiment: Reduced political uncertainty in Japan enhances stability across Asia-Pacific markets, encouraging capital reallocation toward regional equities.