Morgan Stanley MUFG Securities has indicated that Japan's ruling Liberal Democratic Party's overwhelming victory in the recent elections could enhance the probability of the Topix index reaching 4,250 points by the end of 2026. According to Jin10, the firm's report, authored by four economists and strategists, suggests that in a bull market scenario, increased fiscal spending and investments in economic security and defense are expected to improve corporate earnings prospects and reduce risk premiums, potentially raising the forward price-to-earnings ratio to approximately 17 times. In the short term, large-cap, high-liquidity, high-beta stocks, and defense-related sectors are anticipated to perform well.