Tokyo stocks hit a new record and neared a key threshold on Tuesday, and then dropped as Sanae Takaichi became Japan’s prime minister.

The Nikkei 225 stock index opened at 49,675.43, up 1% and breaking the previous record, of 49,185.5, set on Monday. It rose as high as 49,945.95 — now the new record — shortly before the conclusion of the morning session.

The 50,000 mark, just a week ago forecast as a year-end target by some brokers, was almost hit.

Stocks started falling in the afternoon as parliament voted to make Takaichi prime minister. The benchmark index ended the day up 0.27% at 49,316.06, while the yen retreated slightly.

The “Takaichi trade,” characterized by strong stocks and a weak yen, has not worked out as hoped by some traders.

While the market initially rallied as monetary and fiscal dove Takaichi became the ruling Liberal democratic Party’s new leader earlier this month — and presumptive prime minister — trading became choppy in recent days after Komeito broke with the LDP and ended a 26-year coalition.

Concerns about political instability started to outweigh expectations about easy money, while the realities of the political math became more apparent as the days ticked by.

Stocks then rebounded on Monday as the LDP moved closer to forming a new coalition.

It inked a last-minute agreement with the Japan Innovation Party (JIP) — also known as Nippon Ishin no Kai — on Monday evening, which effectively guaranteed Takaichi’s ascension to the prime ministership after weeks of uncertainty.

“The JIP’s economic policy, which is based on fiscal soundness and respect for the independence of the Bank of Japan, stands in stark contrast to that of Takaichi,” wrote Takahide Kiuchi, executive economist at Nomura Research Institute, in a Tuesday report.

“As a result, some view the likelihood that Takaichi’s signature economic policies will be somewhat toned down under a coalition government as one factor behind the unwinding of the ‘Takaichi trade,’” he added.

Volatility is expected in the coming days as the new prime minister forms a Cabinet. News reports on Tuesday indicated that Takaichi would pick former regional revitalization minister Satsuki Katayama, 66, to be the next finance minister.