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Takaichi Confirmed as Japan Prime Minister as Nikkei Closes at Record and Yen Weakens

Markets now look to cabinet picks for signals on fiscal policy.

Overview

  • Sanae Takaichi won the lower house vote with 237 ballots to secure the premiership.
  • The Liberal Democratic Party formed a coalition with the Japan Innovation Party, yet the bloc remains a parliamentary minority that analysts say could curb expansive fiscal plans.
  • Broadcaster FNN reported that Takaichi has finalized a plan to name Satsuki Katayama as finance minister, focusing attention on the new cabinet's stance on spending and debt.
  • The Nikkei 225 set an intraday high near 50,000 and closed at a record 49,316.06, with gains tempered by profit-taking after her election.
  • The dollar traded above ¥151 as the yen weakened and Japanese government bond moves stayed muted, with the 10-year yield around 1.66% and the two-year near 0.935%.