Sanae Takaichi is set to become Japan’s first female prime minister after winning 237 out of 465 votes in the Lower House parliamentary election on Tuesday, securing a majority without a runoff, according to NHK.
This follows a coalition agreement between the Liberal Democratic Party (LDP) and the Japan Innovation Party (JIP), signed last weekend.
Takaichi pledged to support key JIP policies, including reducing parliamentary seats, free high school education, and a two-year pause on the food consumption tax, Reuters reported.
However, experts warn of challenges ahead. Tobias Harris of Japan Foresight told CNBC’s “Squawk Box Asia” that the JIP might avoid cabinet roles due to the LDP’s low approval ratings. Japanese media also report the JIP will back the government externally, allowing easier withdrawal if disputes arise.
The political situation remains uncertain after the Komeito party ended its alliance with the LDP, a union lasting since 1999. Following the announcement, the Nikkei 225 index reversed earlier gains, government bond yields fell, and the yen weakened.
After losing the 2024 LDP leadership race to Shigeru Ishiba, Takaichi became party leader in September 2025. She is closely associated with the late Prime Minister Shinzo Abe’s economic policies, known as “Abenomics.” She criticised the Bank of Japan’s proposed rate hike but BOJ Governor Kazuo Ueda stressed decisions will be made “without any preconceptions.”
On foreign policy, Takaichi advocates a tougher stance on China and supports revising Japan’s pacifist constitution. Her visits to the Yasukuni Jinja shrine, which honours war dead including convicted war criminals, have sparked regional criticism.
Kei Okamura of Neuberger Berman said, “She is going to be very, very careful in how she communicates her views, especially on foreign policy,” adding that she understands the importance of maintaining strong ties with China, South Korea, and the United States, Japan’s largest export markets.
Takaichi must now balance her conservative platform with Japan’s diplomatic and economic realities.