By Momoka Yokoyama

(Bloomberg) — Japan’s defense stocks surged on Monday after Prime Minister Sanae Takaichi’s historic election victory raised investor expectations that her drive to strengthen Japan’s defense capabilities will accelerate.

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Kawasaki Heavy Industries (7012.T) rose as much as 17% to a record intraday high, helped as well by strong earnings. Other defense contractors IHI and Mitsubishi Heavy Industries (7011.T) rose more than 5%.

The Liberal Democratic Party secured a two-thirds majority in the 465-seat lower house in Sunday’s election without the help of a coalition partner, according to public broadcaster NHK. With a super majority, Takaichi’s coalition will find it easier to pass legislation and could put the contentious issue of revising the constitution back on the table, including changes to explicitly state the right to possess a military.

Read: Takaichi Triumphs With Japan’s Biggest Post-War Election Victory

With the two-thirds threshold secured, “constitutional revision may also become easier to advance,” said Hiroshi Namioka, chief strategist at T&D Asset Management, adding that the election results will become “a significant positive for defense-related stocks.”

The LDP’s landslide victory also boosted expectations for looser regulations in weapons exports, which would expand business opportunities for Japanese weapons makers.

“Japan is all but set to loosen weapon-export restrictions as part of Prime Minister Sanae Takaichi’s broader military reforms, after her party’s super-majority win in the country’s snap election,” Bloomberg Intelligence analysts including Eric Zhu wrote in a note, adding that it will pose regional competition with South Korean arm makers.

“The way the administration’s footing has strengthened makes it easier to view Japanese defense companies’ plans to expand overseas operations more positively going forward,” said Kazuhiro Toyoda, head of Japanese equities at Schroder Investment Management. “Defense names are likely to get attention in the stocks market.”