Anesthesia listens to questions after visiting Yasuni Shrine to celebrate the shrine’s spring festival held in Tokyo on April 23, 2015.
Toshifumi Kitamura | AFP | Getty Images
Sanae Takachi, who has won the presidency of Japan’s ruling Liberal Democratic Party, is on the verge of becoming the country’s first female prime minister.
Takagi, a solid, conservative and intimate ally of late newcomer Abe, said on Saturday that she “works, works, lets people work” concerns about daily life and the future.
Her rise comes at a time of financial tensions at home and tension overseas relationships, testing whether Japan is doubling the conservative, pro-Abenomics agenda that defined the past decade.
Takato’s victory followed Prime Minister Isbauhauba’s resignation after the LDP lost a majority in both Houses of Parliament in 2024 and 2025, and then ruled as a minority.
This also means that if the Diet convenes on October 15, the opposition could theoretically block higher confirmations as prime minister, but analysts say the risk is low.
Takaichi’s first job is to secure support from at least one opposition party to form a majority working, research firm BMI said in a memo on Monday.
However, the opposition faces a dilemma. Joining the LDP in the coalition could increase their influence, but there is a risk of voter alienation because they are unhappy with the ruling party.
If Takada signs a contract with the opposition, BMI said her government will face several challenges, including living crises, security, managing trade relations with the US president, and addressing domestic concerns about an increase in foreigners living or visiting Japan.
Abenomics 2.0?
Kochi is seen as a supporter of Abenomics, Abe Shinzo’s economic strategy that supported loose monetary policy, fiscal spending and structural reform.
She previously criticized the Bank of Japan’s plans to raise interest rates. This is what Governor Boji Governor Kaida said on Friday that the central bank will set interest rates “without preconceived notions.”
BOJ ended its negative interest rate plan in March 2024 and has recently maintained it at 0.5%.
“We can already guess that we won’t beat inflation, because if she tries to double the Abenomics of the past, it means a much weaker yen, meaning more government spending.
LDP chose Takaichi because she felt she was the perfect person to deal with longtime Asian watcher President Donald Trump.
“She was probably the best option to face off against Trump in this very tense moment between Trump and the rest of the world,” Pesh said.
Last week, Takae expressed concern about the US trade contract, saying on a Fuji TV programme that the agreement “doing” was not off the table, referring to Japan’s $550 billion investment pledge.
Citi analysts are forecasting approximately 47,000 short-term rallies for the Nikkei 225, but warn that Japanese stocks are not undervalued, with topic’s 12-month futures prices and acquisition rates approaching 16 historic peaks.
Analysts expect consumer, defense and export-sensitive stocks to benefit under the Takaichi government, but financial and real estate stocks could face headwinds.
Wild Cards
Kochi calls for a strong stance against China and also supports revision of Japan’s pacifist constitution, particularly Article 9, which waived Japan’s right to war.
The former economic security minister is also considered friendly to Taiwan, which could potentially ruffle Beijing’s feathers. Taiwan’s President Rai Qingte described Takhaich as “a solid friend of Taiwan” in the Japan Post on Saturday, Saturday, expressing his hope that he could “elevate relations with Japan to a new level.”
The late Shinzo be (L) and Sanae Takaichi (R) were at the Science and Technology Innovation Conference held in Tokyo on October 22, 2014.
Toshifumi Kitamura | AFP | Getty Images
Her previous visit to the controversial Yasukuni Shrine, honoring Japan’s war deaths, including war criminals, has attracted criticism from China and South Korea.
Kei Okamura, managing director and portfolio manager at Neuberger Berman, told CNBC.
“Her views on China and South Korea are also very well flagged, but she also understands that we must maintain very good relations with all these countries, especially the US.
He added that Kochi has not abandoned her strong nationalist view. “This is something I think we’re continuing to look closer, especially in our first year and potentially our second year in this administration.”
