Overview
- Parliament elected Takaichi after the LDP secured a last‑minute pact with the Japan Innovation Party following Komeito’s withdrawal from their 26‑year coalition.
- The LDP–Ishin arrangement leaves the government without stable majorities in both chambers, with Ishin declining cabinet posts and keeping freedom to compete in elections.
- Takaichi named Satsuki Katayama as finance minister, the first woman in the role; the dollar briefly dipped to about ¥150.50 on reports of her appointment before rebounding above ¥151.
- Katayama previously told Reuters Japan’s fundamentals point to a yen near ¥120–130 per dollar, while Takaichi signals Abenomics‑style stimulus and a more assertive defense posture.
- President Trump is scheduled to visit Tokyo within days for talks with Takaichi, as Beijing and Seoul scrutinize her nationalist positions and India’s Narendra Modi welcomes deeper ties.