(Reuters) -A look at the day ahead in European and global markets from Wayne Cole.

The Takaichi trade has been in full swing since the Liberal Democratic Party did a deal with the Japan Innovation Party to form a coalition government, bringing Japan closer to its first female prime minister.

Analysts assume Sanae Takaichi would be pro-stimulus and against further hikes in interest rates, a negative for the yen and bonds but a plus for equities. The Nikkei duly jumped 2.9% to an all-time high, while the yen slipped modestly. Even ultra-long JGBs caught a bid, perhaps on relief there would actually be a government, albeit a minority one.

JAPAN BUTTRESSES ASIA MARKETS AFTER MIXED CHINA DATA

The jump in the Nikkei helped lead most of Asia higher, with markets successfully navigating a slat

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