New Delhi, Feb. 9 -- Japanese shares surged to their highest levels since April following Prime Minister Sanae Takaichi's landmark victory in Sunday's election, raising hopes of increased government investment in major sectors.

The Nikkei 225 index soared up to 5.7%, reaching a new record of 57,337.07, while the broader Topix index climbed as much as 3.4% to a fresh peak. Gains were driven primarily by technology and machinery stocks, with several chip-equipment manufacturers jumping more than 10%.

The Japanese yen also gained, reaching 156.88 against the US dollar. Yields on 10-year Japanese government bonds climbed nearly 4 basis points to 2.274%, while 20-year JGB yields increased by about 3 basis points to 3.158%.

Takaichi's ruling...