Sanae Takaichi has made history as Japan's first female prime minister, following a parliamentary vote that reflects a significant shift in the nation's political landscape. Takaichi, a hardline conservative and a protégé of former Prime Minister Shinzo Abe, garnered 237 votes in the lower house election, surpassing the majority in the 465-seat chamber. Her election is seen as a breakthrough in a country where male leaders have traditionally dominated.

Takaichi's victory is expected to lead to a more right-leaning approach on various policies, particularly concerning immigration and social issues. Her Liberal Democratic Party (LDP), which has been in power for most of Japan's postwar history, formed a coalition with the right-wing Japan Innovation Party, known as Ishin, to secure her position.

Japan is currently facing rising prices after years of deflation, which has led to public discontent and increased support for opposition parties, including far-right groups. Takaichi is anticipated to advocate for government spending to stimulate the economy, similar to Abe's policies. This has sparked what is being referred to as the "Takaichi trade" in the stock market, pushing the Nikkei share average to record highs, with the latest peak occurring on Tuesday.

However, this surge in the stock market has raised concerns among investors regarding the government's capacity to finance additional spending, especially given Japan's substantial national debt. Tadashi Mori, a political science professor at Aichi Gakuin University, noted that while Takaichi has secured enough votes for the premiership, she will need broader support from opposition lawmakers to govern effectively. "The two parties do not command a majority in either chamber, and to ensure a stable government and gain control of key parliamentary committees, they will need to secure more than half the seats," Mori stated.

Mori also cautioned that any efforts to revive Abenomics could face challenges, as the original framework was designed to combat deflation. "In today's inflationary environment, further stimulus risks only weakening the yen. Likewise, cutting the consumption tax may spur demand, but it won't curb rising prices," he explained.

Takaichi has also received approval from the upper house and is set to be sworn in as Japan's 104th prime minister on Tuesday evening, succeeding Shigeru Ishiba, who resigned in September following election losses.