Tokyo, October 4: Japan’s ruling Liberal Democratic Party (LDP) elected conservative nationalist Sanae Takaichi as its head on Saturday, putting her on track to become the country’s first female prime minister in a move that could unsettle investors and regional neighbours.
Takaichi, 64, beat moderate Shinjiro Koizumi, 44, to win leadership of a party facing declining public support and the loss of its majorities in both houses under outgoing Prime Minister Shigeru Ishiba. A parliamentary vote to formally confirm her as prime minister is expected on Oct. 15, with Takaichi widely favoured due to the ruling coalition’s majority.
A former economic security and internal affairs minister, Takaichi advocates expansionary fiscal policies and supports the aggressive spending and easy monetary policy of Abenomics. She has criticised recent Bank of Japan interest rate hikes, a stance that analysts say could influence bond markets and reduce the likelihood of a near-term rate increase.
On foreign policy, Takaichi has taken nationalistic positions, including regular visits to the Yasukuni Shrine, support for revising Japan’s pacifist postwar constitution, and proposals to strengthen ties with Taiwan, a move welcomed by President Lai Ching-te. She has also raised the possibility of reworking a U.S.-Japan investment deal negotiated under former President Donald Trump.
The election of Takaichi may concern neighbours like China and South Korea, given her nationalist stance. U.S. Ambassador George Glass congratulated her on X (formerly Twitter), saying he looked forward to strengthening the Japan-U.S. partnership.
In her victory speech, Takaichi vowed to promote Japan globally, declaring “Japan is Back!” and promising a tireless work ethic. She is expected to hold a press conference around 0900 GMT.
