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Japan‘S stock market It reached a record level as soon as the elections were held in the country on Tuesday. Sanae Takaichi As its first female Prime Minister.
Ms Takaichi secured her place in the 465-seat lower house by securing 237 votes. JapanShe became the 104th Prime Minister after a coalition agreement between the ruling Liberal Democratic Party (LDP) and the right-wing. Japan Innovation Party (Ishin). He was later approved by the Upper House and took oath on Tuesday afternoon.
Her victory is a major breakthrough in a country where politics is still dominated by men, but it also signals a sharp turn to the right on issues such as immigration and social policy. Economically, investors expect she will double stimulus measures – a stance that traders have dubbed “Takaichi trading.”
Ms. Takaichi, a heavy metal drummer and admirer of former British Prime Minister Margaret Thatcher, Like the late comes from the hardline LDP faction shinzo abeAnd he is expected to pursue the same mix of high government spending and easy monetary policy that once fueled his “Abenomics” agenda.
nikki The 225 index responded by closing in on the never-before-broken 50,000 mark before lunch on Tuesday after record gains for the second consecutive day, while the broader Topix index hit a record high. The yen weakened to around 151 yen per US dollar, giving a boost to exporters such as Toyota and Sony.
Ms Takachi replaced Shigeru Ishiba, ending three months of political vacuum and wrangling since the Liberal Democratic Party’s devastating election defeat in July.
“Political stability is essential at this time,” Ms. Takachi said Monday as she signed a coalition agreement with Ishin leader and Osaka Governor Hirofumi Yoshimura, with policies agreed by the pair underscoring Ms. Takachi’s hawkish and nationalist views. “Without stability, we cannot move toward a stronger economy or diplomacy,” he said.
The LDP did not have enough numbers in the July election to govern alone – an unprecedented blow to a party that has dominated Japanese politics for nearly seven decades.
Public frustration over inflation, falling wages and political funding scandals has weakened LDP-led governments, including Mr. Ishiba’s, and undermined investor confidence.
Several rounds of coalition talks failed before the LDP struck a last-minute deal this week with the Japan Innovation Party, a nationalist, Osaka-based bloc that shares Ms. Takachi’s hawkish views on defense and constitutional reform.
The coalition agreement emphasizes Ms. Takachi’s specific priorities: fiscal stimulus, economic security, and a strong military posture amid rising tensions with China and North Korea.
She has previously said that her economic policy will focus on tackling rising consumer prices and raising wages. One of her popular promises is to continue easy credit as she opposes raising interest rates, but this could hamper efforts to curb inflation and strengthen the Japanese yen.
Ms Takaichi’s government is now expected to unveil an economic relief package by December to ease the impact of inflation and a weak currency. He is also under pressure to improve relations with traditional partners after his departure from the Komeito party, which has exposed rifts between the LDP’s nationalist and centrist factions.
Japan’s falling birthrate will also remain a challenge for the new government as the country’s population is declining at a record pace. Ms. Takachi is the first woman to lead Japan’s government, but she has long opposed policies promoting gender equality. She supports only male succession to the royal family and opposes gay marriage and separate surnames for married couples.
However, he said he is in favor of offering tax incentives to companies that provide child care to their employees and potential tax breaks for family spending on child care.
Japan ranks 118th out of 148 countries in the 2025 Global Gender Gap Index, lowest among G7 countries. Women hold only 16 percent of the seats in the Lower House and 26 percent of the seats in the Upper House, making Japan one of the least developed countries in terms of female political representation.
Tuesday was a generally strong day for Asian markets, with gains across the region amid signs that US-China trade tensions are easing. On Monday, US President Donald Trump played down the risk of confrontation with China over the Taiwan issue and expressed hope of reaching a “very strong trade agreement”.
Chinese shares also joined the gains, with the Shanghai Composite rising 1.2 percent. South Korea’s Kospi reached record high led by semiconductor companies.
India’s Nifty 50 also hit a new 52-week high, lifted by a surge in foreign inflows during the Diwali festive season. Hong Kong and Australian shares also gained.