Japan stocks soar after Takaichi named PM-to-be

Tokyo, Oct 6, 2025 (AFP)
Japanese stocks and bond yields soared but the yen fell on Monday, after conservative and potential big-spender Sanae Takaichi won the leadership of the ruling party.
Takaichi, likely to become prime minister this month, has in the past backed aggressive monetary easing and expanded government spending, echoing her mentor, former premier Shinzo Abe.
But during the campaign to head the Liberal Democratic Party which concluded Saturday, she toned down her calls for fiscal expansion and opposition to Bank of Japan rate hikes amid rising prices.
After winning the top job, Takaichi pledged first to implement measures to address inflation and boost the economy, rural areas and primary industries such as farming and fisheries.
Takaichi "looks more inclined than the others to juice the economy," said Taro Kimura at Bloomberg Economics.
"Still, with inflation rising and long-term (bond) yields climbing, she will have to balance her stance with reality, in order not to accelerate cost-of-living squeeze and jolt the rate market," Kimura said.
The Nikkei 225 was up just over four percent in morning trade while the yen fell, hitting 149.76 against the dollar and falling to a new record against the euro.
Yields on 30-year Japanese bonds also rose sharply, reflecting fears that the country's already colossal debts will balloon further under Takaichi.
- Trump incoming -
Takaichi, 64, who is set to become Japan's first female prime minister, is seen as an arch-conservative and a China hawk.
One of Takaichi's first official duties as premier will be receiving US President Donald Trump, who is reportedly set to make a stopover in Japan in late October.
Takaichi said Saturday that she had no plans to overturn Tokyo's recent trade deal -- over which questions remain -- with Washington.
Takaichi, a heavy metal drummer in her youth, saw off a challenge from four other candidates to become head of the Liberal Democratic Party.
In a runoff vote she beat the more socially progressive Shinjiro Koizumi, 44, who would have become Japan's youngest premier of the modern era.
Primarily for LDP members, Takaichi's task will be to restore the fortunes of the party, which has governed almost non-stop since 1955.
Outgoing premier Shigeru Ishiba took the reins last year but his LDP-led coalition lost its majority in both houses of parliament, in part because of voter anger at inflation and an LDP slush fund scandal.
One party on the up is Sanseito, which echoes other populist movements in calling immigration a "silent invasion", even though foreign-born residents make up only around three percent of the population.
Japan should "reconsider policies that allow in people with completely different cultures and backgrounds", Takaichi had said during the LDP campaign.

Sumber : AFP