Japan’s Defense, Tech Stocks Climb as ‘Takaichi Trade’ Reignites

Japanese defense and tech shares soared on speculation they’ll benefit from more government spending after the election win of the pro-stimulus conservative Sanae Takaichi positions her to become the nation’s next prime minister.

Defense equipment makers Kawasaki Heavy Industries Ltd., Japan Steel Works Ltd. and IHI Corp. all soared at least 10% at one point on Monday, sending the Topix index’s measure of machinery makers to an all-time intraday high. Chip-related shares including Tokyo Electron Ltd. and Advantest Corp. also surged, outperforming the benchmark Topix.