Sanae Takaichi Breaks Barriers as Japan's First Female PM, Steering Right

Sanae Takaichi, a conservative known for her admiration of Margaret Thatcher, is elected as Japan's first female prime minister. Her leadership marks a rightward political shift and focuses on revitalizing the economy through government spending, amidst challenges like public unrest over inflation and immigration issues.

Sanae Takaichi has made history as Japan's first female prime minister, elected with 237 votes in the lower house. Her election signals not only a significant political shift to the right but also a breakthrough in Japan's male-dominated political landscape.

The victory comes after her Liberal Democratic Party formed a coalition with the right-wing Japan Innovation Party, commonly known as Ishin. As the country faces rising prices following years of deflation, Takaichi is expected to employ government spending to invigorate the economy. This move has led to the "Takaichi trade," causing the Nikkei share average to reach new record highs, although concerns about the national debt persist among investors.

Professor Tadashi Mori highlights the need for additional support from opposition lawmakers for Takaichi to govern effectively. Given her intention to revive Abenomics, the economic strategy may face hurdles in an inflationary environment, as further stimulus could weaken the yen. Takaichi will take office following her approval by the upper house, succeeding Shigeru Ishiba, who resigned due to election losses.

(With inputs from agencies.)