Published: Oct 06, 2025, 23:07 IST | Updated: Oct 06, 2025, 23:07 IST
Japan may be on the brink of a historic first. Sanae Takaichi’s election as leader of the ruling Liberal Democratic Party makes her the frontrunner to become Japan’s first female prime minister.
Markets reacted immediately. The Nikkei 225 jumped nearly 4%, while the yen tumbled, reflecting expectations of a more growth-oriented economic approach. Investors are betting on looser monetary policy, higher defence spending, and expansionary fiscal measures under a Takaichi administration.
Financial stocks lagged as rate hike hopes dimmed, and government bonds moved cautiously, mirroring the mix of optimism and uncertainty surrounding Japan’s political and economic direction.