Overview

• The Liberal Democratic Party chose Sanae Takaichi as leader at its 70th anniversary, setting up a Diet vote around October 15 that could confirm her as prime minister despite a theoretical chance of opposition blockage viewed as unlikely by analysts.
• With the LDP short of a majority, BMI says she must secure backing from at least one opposition party to form a working majority or navigate minority rule.
• She signals an Abenomics revival and has criticized higher interest rates, while market watchers warn of yen weakness and firmer inflation, and Citigroup flags a near‑term Nikkei 225 target near 47,000 with consumer, defense and export plays seen benefiting as finance and real estate face pressure.
• Takaichi supports constitutional revision and a tougher posture toward China and North Korea, her past Yasukuni visits drew rebukes from Beijing and Seoul, and Taiwan’s president called her a steadfast friend.
• Her domestic pledges include tax relief for childcare services and expanded women’s health care, while a pending U.S.–Japan trade agenda and President Donald Trump’s visit this month present an early diplomatic test tied to a stated $550 billion investment package.