Overview
- Sanae Takaichi won 237 votes in the 465-seat lower house and was appointed premier, with formalities including an audience with the Emperor expected later on Tuesday.
- The Liberal Democratic Party signed a cooperation agreement with the Japan Innovation Party that yields about 231 seats, leaving the bloc two short of a majority.
- Komeito’s exit from its 26-year partnership with the LDP followed disputes over tighter funding rules after a slush fund scandal and concern about Takaichi’s hardline positions.
- Tokyo stocks climbed to record highs and the yen weakened as investors anticipated fiscal stimulus, tax cuts and business-friendly policies under the new government.
- The LDP–Ishin pact includes proposals to cut roughly 10% of lower-house lawmakers, abolish a provisional gasoline tax and promote Osaka as a secondary capital.