The Nikkei 225 rallied 3.1% to close at 53,549, while the broader Topix Index jumped 2.41% to 3,599 on Tuesday, pushing Japanese equities to fresh all-time highs amid speculation that Prime Minister Sanae Takaichi could call a snap election as soon as next month. Takaichi is widely expected to leverage her strong public approval to advance expansionary fiscal policies, improving the country’s growth outlook. More attractive valuations, alongside expectations of solid earnings and economic expansion, continued to draw in foreign investors. Technology stocks led the rally, with sharp gains in Advantest (8.5%), SoftBank Group (4.3%), Tokyo Electron (8.2%), Lasertec (8.9%) and Kioxia Holdings (7.8%). Other heavyweight names also climbed, including Mitsubishi UFJ (5.3%), Mitsubishi Heavy Industries (4.9%) and Toyota Motor (7.5%).