Investors welcomed the announcement of her victory in the LDP leadership race, with shares rising in real estate, technology and heavy industry companies.<\/p>\n
While the Japanese stocks rose, the yen hit a record low against the euro and dropped by 1.7% against the US dollar.<\/p>\n
Monday’s market response was largely a “knee-jerk reaction” to the potential appointment of Takaichi as prime minister, Japan economist Jesper Koll told the BBC.<\/p>\n
While her policy proposals to stimulate the economy through increased government spending could benefit businesses, they may further weaken the yen as Japan’s debt rises, said Mr Koll.<\/p>\n
If confirmed later this month as the successor to Shigeru Ishiba, Takaichi will be Japan’s first female prime minister.<\/p>\n
Mentored by late Prime Minster Shinzo Abe<\/a>, she has championed his economic vision – known as Abenomics<\/a> – of high public spending and cheap borrowing.<\/p>\n If confirmed in the role, Takaichi will have to navigate a challenging US-Japan relationship and see through a tariff deal with US President Donald Trump’s administration, which was previously agreed by the Ishiba government<\/a>.<\/p>\n