Stocks Surge in Tokyo Following Election of Japan's First Female PM-Elect Takaichi

Tokyo Stock Exchange (Credit: Reuters)

KEY POINTS

• Nikkei surged ~4.5% to record highs on Takaichi's victory.
• Yen weakened sharply as investors scaled back rate hike expectations.
• Takaichi's ability to deliver will hinge on cabinet choices, debt management, and BOJ policy shifts.

Japan's financial markets leapt higher Monday after the ruling Liberal Democratic Party (LDP) elected Sanae Takaichi as its new leader—effectively positioning her to become the country's first female prime minister.