Overview

• Sanae Takaichi was elected leader of the ruling Liberal Democratic Party, becoming the first woman to head the party and the frontrunner to be confirmed as prime minister later this month.
• The Nikkei 225 jumped about 4–5% to an all-time high near 48,061, lifting its year-to-date gain to just over 20%.
• The yen weakened sharply, touching a record low versus the euro around ¥175.41 as traders priced in looser fiscal and monetary settings.
• Analysts say investors expect a revival of Shinzo Abe–style stimulus, with Commerzbank’s Thu Lan Nguyen noting Takaichi’s affinity for Abenomics and linking it to the currency move.
• Prospects for sweeping measures remain uncertain because the governing coalition no longer holds absolute majorities in both houses of the Diet, complicating passage of large stimulus.