0258 GMT - The landslide election win by Japan's LDP is likely to raise the probability of the Topix reaching 4250 by the end of 2026, Morgan Stanley MUFG Securities says. The target is the brokerage's bull-case scenario for the index. Under this scenario, "expanded fiscal spending and investment in economic security and defense would improve earnings prospects and reduce risk premia, lifting the forward P/E to around 17X," four of its economists and strategists write in a research report. "Near term, we see scope for outperformance by large-cap, highly liquid, high-beta stocks and defense-related names," they add. The Topix rises 2.3% to 3785.59 by the midday break. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

February 08, 2026 21:58 ET (02:58 GMT)

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