Japanese equities expected to scale fresh highs, but some warn that the rally may be treading on thin line.

Takaichi led the ruling Liberal Democratic Party to a supermajority in the Lower House, securing 316 seats in Japan's largest election win since World War Two.

Japan's markets are set to scale new records as the Nikkei looks set to continue riding the "Takaichi trade."

Japanese equities expected to scale fresh highs, but some warn that the rally may be treading on thin line.