Japanese Stocks Soar as Sanae Takaichi Becomes Japan’s First Female Prime Minister
Japan’s fiscal requests celebrated a major moment on Tuesday as Sanae Takaichi was tagged the nation’s first female prime minister. Investors responded madly, transferring the Nikkei 225 and Topix indicators to unknown highs.
Ms Takaichi secured 237 votes in the 465-seat lower house, following a coalition agreement between her Liberal Democratic Party( LDP) and the right- sect Japan Innovation Party( Ishin).
Her appointment was later verified by the upper house, and she was officially sworn in on Tuesday autumn.
The major palm not only breaks the long-standing male dominance in Japanese politics but also signals a sharper rightward turn in policy, particularly on immigration and social matters.
Analysts predict that her government will maintain aggressive stimulus policies, a strategy that traders have already dubbed the “Takaichi trade.”
Ms Takaichi hails from the same hardline faction of the LDP as the late Shinzo Abe. Market watchers expect her to continue the mix of high government spending and accommodative monetary policy that defined Abe’s “Abenomics.”
The stock market reaction was immediate. The Nikkei 225 edged closer to the fugitive 50,000- point mark by noon after two successive days of record earnings.
Japan elected its first female Prime Minister
Sanae Takaichi, 64, heavy metal drummer who defeated 4 men to make history
Shinzo Abe protégé wears blue suits honoring Margaret Thatcher, plays drums to Iron Maiden
First woman to lead Japan. The political ️attle begins now. pic.twitter.com/nG6Xt305HW
— Boi Agent One (@boiagentone) October 21, 2025
Meanwhile, the broader Topix indicator hit its loftiest position 34 times. The yearning slid to roughly ¥ 151 per US dollar, furnishing a boost to exporters such as Toyota and Sony.
Ms Takaichi’s rise ends a three-month political impasse following the LDP’s disappointing election performance in July, replacing Shigeru Ishiba as party leader.
“Political stability is essential right now,” Ms Takaichi said on Monday while signing the coalition agreement with Ishin leader and Osaka governor Hirofumi Yoshimura. “Without stability, we cannot push measures for a strong economy or diplomacy.”
The agreement highlights Ms Takaichi’s hawkish and nationalistic outlook, suggesting a government keen on strong economic intervention and assertive foreign policy.
Japan now enters a new political era, with markets and citizens alike watching closely how its first female prime minister balances conservative values with economic ambition.
