Political Milestone:
- Sanae Takaichi has won the presidency of Japan’s ruling Liberal Democratic Party (LDP), positioning her to become the country’s first female prime minister.
- Her rise follows the resignation of Prime Minister Shigeru Ishiba after the LDP suffered major electoral losses in 2024 and 2025.
Ideological Profile:
- A hardline conservative and close ally of the late Shinzo Abe.
- Strong proponent of Abenomics—favoring loose monetary policy, fiscal stimulus, and structural reforms.
- Known as a China hawk and advocates revising Article 9 of Japan’s constitution, which renounces war.
Domestic Challenges:
- Faces a cost-of-living crisis and public dissatisfaction with the LDP.
- Must secure support from at least one opposition party to form a working majority in the National Diet.
- Opposition parties are weighing the risks of joining a coalition versus alienating voters.
Foreign Policy & Economic Outlook:
- Will need to manage tense trade and security relations with U.S. President Donald Trump.
- Has criticized the Bank of Japan’s interest rate hikes; her leadership could influence future monetary policy.
- Markets are watching closely, her fiscal stance may impact bond yields and the yen.
What’s Next:
- The Diet is set to convene on Oct 15 to confirm the next prime minister.
- Analysts say the risk of her confirmation being blocked is low, but coalition negotiations remain key.
(Source – CNBC)
—Agencies
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