Japan’s Diet Elects Sanae Takaichi as First Female Prime Minister

Overview

• Takaichi won the parliamentary vote in the first round and will formally assume office after an imperial appointment later today.
• The LDP–Ishin cooperation delivers 231 lower‑house seats, leaving the bloc short of an outright majority and requiring additional opposition support to pass key measures such as a supplementary budget.
• In return for Ishin’s backing, Takaichi pledged steps including a 10% cut in the number of legislators and a two‑year suspension of the consumption tax on food.
• Investors priced in looser fiscal policy as the yen weakened and the Nikkei closed up 3.4%, reaching a record high.
• A nationalist conservative aligned with Shinzo Abe’s faction, Takaichi backs fiscal stimulus, higher defense spending and constitutional revision, and is expected to meet President Trump in Tokyo next week.