Japan made history when Takaichi became the country’s first female prime minister
Sane Takaichi made history on October 21 when she won Japan’s parliamentary vote to become the country’s first female prime minister.
Philip Fong | AFP | Getty Images
Domestic stock markets cheered as Sane Takaichi made history on Tuesday and won Japan’s parliamentary vote to become the country’s first female prime minister.
Takaichi received 237 votes in the first round of voting, negating the need for a runoff vote in the 465-seat lower house, according to public broadcaster NHK.
Her victory came after the ruling Liberal Democratic Party formed a coalition with the Japan Innovation Party And it is known to have been signed An agreement was reached at the end of the week to form a coalition government.
Takaichi agreed to support JIP policies such as a reduction in parliamentary seats, free high school education, and a two-year moratorium on food consumption taxes. According to Reuters.
Tobias Harris, founder and principal of risk consulting firm Japan Foresight, told CNBC “Squawk Box AsiaThe JIP may not want to take a cabinet post, saying it “risks joining an alliance with the LDP which is still seeing historically low approval ratings, (and) doesn’t really have the trust of the people.”
Domestic Japanese media have also reported that JIP Not looking at Cabinet posts in the new administration, and will instead support the government from the outside.
If the JIP does not like the LDP’s approach, it will be easy for them to walk out of the alliance, Harris said.
Under the Ishiba administration, the LDP suffered heavy electoral losses, losing its majority in both the upper and lower houses.
Japan’s stock market has cheered Takaichi’s takeover of the government Nikki 225 After Monday’s record session, new highs were reached on Tuesday in what experts called “Takai’s trade”, pricing in the prospect of a looser monetary policy and greater fiscal stimulus.
Japan’s benchmark 10-year government bond yield Marginally fell to 1.665%. The yen was down 0.15% at 150.96.
The way of PM
of Takai Top job path in the country is challenging.
In the 2024 LDP presidential race, Takaichi was defeated by Shigeru Ishiba. She won the party leadership in September this year, defeating Agriculture Minister Shinjiro Koizumi after Ishiba announced his resignation.
But on October 10, suddenly the Kometo party out of his alliance With the LDP, Takaichi’s fortunes were in jeopardy, ending ties going back to 1999.
A staunch conservative, Takaichi has been widely labeled an apostle of “Abenomics,” the economic policy of the late Prime Minister Shinzo Abe, which advocated loose monetary policy, fiscal spending and structural reforms.
She previously criticized the Bank of Japan’s plan to raise interest rates in the 2024 LDP leadership race, although BoJ Governor Kazuo Ueda has said the central bank will set rates. “Without any preconceptions.”
On the geopolitical front, Takaichi has called for a tougher stance toward China and is in favor of reforming Japan’s pacifist constitution.
Her previous visits to the controversial Yasukuni Shrine, which honors Japan’s war dead, including convicted war criminals, have drawn criticism from China and South Korea, which see the site as a symbol of Tokyo’s wartime aggression.
Neuberger Berman managing director and portfolio manager Kei Okamura told CNBC earlier this month that Takaichi is going to be “very, very careful” about how she communicates her views, especially on foreign policy.
“She also has very good views on China and Korea. But she also understands that she also has to have good relations with all these countries, especially the United States, because they all have a lot of influence in terms of Japan’s biggest export destinations.”
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