--- title: "The Liberal Democratic Party won a landslide victory in the House of Representatives, and Morgan Stanley: may benefit the Nikkei Index" type: "News" locale: "en" url: "https://longbridge.com/en/news/275260199.md" description: "The Japanese House of Representatives held an early election, with the Liberal Democratic Party winning overwhelmingly with 316 seats. Morgan Stanley believes this result may be favorable for the Nikkei Index, expecting large-cap stocks, high liquidity, and defense-related stocks to outperform the market. If an expansionary fiscal policy is maintained during the budget review period, the coordination of Japan and the U.S. defense strategy will help continue the high market trade strategy. The market should pay attention to the actual effectiveness of the Japanese government's efficiency department, and the impact of the consumption tax reduction debate on domestic demand-related stocks still needs to be observed" datetime: "2026-02-09T03:20:56.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275260199.md) - [en](https://longbridge.com/en/news/275260199.md) - [zh-HK](https://longbridge.com/zh-HK/news/275260199.md) --- # The Liberal Democratic Party won a landslide victory in the House of Representatives, and Morgan Stanley: may benefit the Nikkei Index The House of Representatives of Japan held an early election vote, with the ruling Liberal Democratic Party winning overwhelmingly, securing 316 out of 465 seats in the House of Representatives. Morgan Stanley published a research report indicating that this election result may benefit the Nikkei index, with large-cap stocks, high liquidity, high beta stocks, and defense-related stocks expected to outperform the market in the short term. Morgan Stanley stated that if an expansionary fiscal policy tendency is maintained during the budget review period, and Japan and the U.S. emphasize coordination on defense strategy, the effectiveness of the "high market trade" strategy is expected to temporarily continue. The team believes that the market should examine the actual effectiveness of Japan's "Department of Government Efficiency" (DOGE), and it is still too early to view the debate on consumption tax cuts as a positive factor for domestic demand-related stocks ### Related Stocks - [1346.JP](https://longbridge.com/en/quote/1346.JP.md) - [1492.JP](https://longbridge.com/en/quote/1492.JP.md) - [1593.JP](https://longbridge.com/en/quote/1593.JP.md) - [7914.JP](https://longbridge.com/en/quote/7914.JP.md) - [2627.JP](https://longbridge.com/en/quote/2627.JP.md) - [YCS.US](https://longbridge.com/en/quote/YCS.US.md) ## Related News & Research - [Kyodo Printing Unveils FY2026 Results and Strategy Focused on Corporate Value](https://longbridge.com/en/news/286520122.md) - [Japan's factory activity expands at slower pace, cost pressures surge](https://longbridge.com/en/news/287134571.md) - [Cyviz Q1 Revenue Slips but Defense Demand, New Contracts Support Shift to Software Model](https://longbridge.com/en/news/287162042.md) - [DRDO completes final trials of UAV-launched precision guided missile](https://longbridge.com/en/news/286987214.md) - [Metallium awarded Phase II SBIR contract for recovering critical minerals from e-waste](https://longbridge.com/en/news/286997076.md)