Japanese stocks hit an all-time high after the ruling Liberal Democratic Party (LDP) elected Sanae Takaichi as its new leader, positioning her to become Japan’s first female prime minister. The Nikkei 225 soared over 4.5%, surpassing 47,000 points for the first time, as investors welcomed Takaichi’s pro-business stance. A known admirer of Margaret Thatcher, she has long advocated for higher government spending and low borrowing costs—policies aligned with the late Shinzo Abe’s Abenomics. However, the yen weakened sharply, dropping 1.7% against the US dollar and hitting a record low against the euro. Analysts, including economist Jesper Koll, cautioned that while her fiscal approach may boost corporate sectors, it could deepen Japan’s debt concerns.

If confirmed later this month, Takaichi will face pressing challenges—reviving Japan’s sluggish economy, managing inflation, and renegotiating trade terms with the Trump administration, which plans a visit to Tokyo soon.

Japanese stocks hit an all-time high after the ruling Liberal Democratic Party (LDP) elected Sanae Takaichi as its new leader, positioning her to become Japan’s first female prime minister. The Nikkei 225 soared over 4.5%, surpassing 47,000 points for the first time, as investors welcomed Takaichi’s pro-business stance. A known admirer of Margaret Thatcher, she has long advocated for higher government spending and low borrowing costs—policies aligned with the late Shinzo Abe’s Abenomics. However, the yen weakened sharply, dropping 1.7% against the US dollar and hitting a record low against the euro. Analysts, including economist Jesper Koll, cautioned that while her fiscal approach may boost corporate sectors, it could deepen Japan’s debt concerns.

If confirmed later this month, Takaichi will face pressing challenges—reviving Japan’s sluggish economy, managing inflation, and renegotiating trade terms with the Trump administration, which plans a visit to Tokyo soon.