Sanae Takaichi Becomes Japan’s First Female Prime Minister as Markets Surge
- Rahaman Hadisur
- Mar 7
- 2 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Business
Japan has made history with the election of Sanae Takaichi as the country’s first female prime minister, marking a major political milestone and boosting investor confidence. Her victory coincided with a surge in Tokyo’s stock market, reflecting optimism about her incoming government’s economic and structural reform agenda.
Takaichi secured 237 votes in Japan’s 465-seat lower house on Tuesday after her Liberal Democratic Party (LDP) struck a coalition deal with the Japan Innovation Party (JIP). The new administration is expected to focus on increasing defence spending, implementing selective tax cuts, and exploring the restart of Japan’s nuclear power plants, most of which have remained inactive since the 2011 Fukushima disaster.
The Nikkei 225 closed 0.3 per cent higher, having climbed as much as 1.5 per cent during trading to near 50,000 points, its highest level in decades. Analysts said investor enthusiasm, dubbed the “Takaichi trade,” reflects hopes for a stable government capable of delivering economic reform and growth.
A former television presenter and long-time admirer of Margaret Thatcher, Takaichi is reportedly considering appointing Satsuki Katayama as Japan’s first female finance minister. Her cabinet is also expected to include a record number of women, reinforcing her commitment to advancing gender equality in leadership.
The coalition between the LDP and the reformist JIP replaces the LDP’s long-standing partnership with the Komeito party, which had often slowed major policy initiatives. Political observers expect the new alliance to push forward with pro-growth strategies, including defence expansion and energy sector reforms.
Market strategists said foreign investor interest in Japan remains strong, with projections for the Nikkei 225 to reach new record highs by year-end. Takaichi’s leadership, combining political continuity with reformist momentum, is seen as a pivotal turning point for Japan’s economy and society.
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