Japan's parliament elected ultraconservative Sanae Takaichi as the country's first female prime minister Tuesday, a day after her struggling party struck a coalition deal with a new partner expected to pull her governing bloc further to the right.
Takaichi replaces Shigeru Ishiba, ending a three-month political vacuum and wrangling since the Liberal Democratic Party's disastrous election loss in July.
Ishiba, who lasted only one year as prime minister, resigned with his Cabinet earlier in the day, paving the way for his successor.
Takaichi won 237 votes — four more than a majority — compared to 149 won by Yoshikoko Noda, head of the largest opposition party, the Constitutional Democratic Party of Japan, in the lower house, which elects the prime minister. As the results were announced, Takaichi stood up and bowed deeply.
The LDP's alliance with the Osaka-based rightwing Japan Innovation Party, or Ishin no Kai, ensured her premiership because the opposition is not united.
Takaichi's untested alliance is still short of a majority in both houses of parliament and will need to court other opposition groups to pass any legislation — a risk that could make her government unstable and short-lived.
“Political stability is essential right now," Takaichi said at Monday's signing ceremony with the JIP leader and Osaka Gov. Hirofumi Yoshimura. “Without stability, we cannot push measures for a strong economy or diplomacy.”
The two parties signed a coalition agreement on policies underscoring Takaichi's hawkish and nationalistic views.
Their last-minute deal came after the Liberal Democrats lost its longtime partner, the Buddhist-backed Komeito, which has a more dovish and centrist stance. The breakup threatened a change of power for the LDP, which has governed Japan almost uninterrupted for decades.
Analysts have highlighted the challenges facing Prime Minister Sanae Takaichi as she assumes office, noting both domestic and international pressures. Mieko Nakabayashi, a political science professor at Waseda University, observed that Takaichi has never handled foreign affairs directly, making her diplomatic approach difficult to predict.
While she has previously made statements that appeal to right-wing constituents, including pledges to visit the controversial Yasukuni Shrine and adopt a tough stance toward South Korea, Nakabayashi cautioned that such positions may be more about rallying political support than long-term strategy, warning that full implementation could complicate Japan’s security environment.
Economists and financial strategists have also weighed in on the economic landscape Takaichi inherits.
Masamichi Adachi of UBS Securities highlighted the multiple pressures on her government, from rising prices and a supplementary budget to Japan’s commitments on defense spending and relations with the United States.
“How Prime Minister Takaichi navigates U.S. expectations while maintaining favourable relations will be critical,” he said, pointing to her upcoming meeting with President Donald Trump as a key test of her diplomatic acumen.
Domestically, Takaichi’s economic policies are expected to be a continuation of former Prime Minister Shinzo Abe’s ‘Abenomics,’ but analysts stress that the context has shifted significantly.
Osamu Takashima of Citi noted that unlike ten years ago, Japan now faces inflation and a weak yen, which complicates her ability to apply the same playbook.
Naka Matsuzawa of Nomura Securities added that her coalition with the Japan Innovation Party (Ishin) could temper reflationary measures, suggesting that stock-market rallies and yield-curve flattening may now be driven more by structural reforms and strategic investment than by aggressive currency weakening.
Market strategists remain cautiously optimistic but mindful of volatility. Shoki Omori of Mizuho Securities observed that the USD/JPY exchange rate has shown a tendency to test higher levels since Takaichi’s rise, with recent fluctuations reflecting temporary adjustments in global economic conditions.
Meanwhile, Takashi Kiuchi of Nomura Research Institute pointed out that Ishin’s emphasis on fiscal restraint and Bank of Japan independence could restrain excessive monetary intervention, suggesting a measured and balanced approach to economic management under the new administration.
Later in the day, Takaichi, 64, will present a Cabinet with a number of allies of LDP's most powerful kingmaker, Taro Aso, and others who backed her in the party leadership vote.
JIP will not hold ministerial posts in Takaichi's Cabinet until his party is confident about its partnership with the LDP, Yoshimura said.
Takaichi is running on deadline, as she prepares for a major policy speech later this week, talks with US President Donald Trump and regional summits. She needs to quickly tackle rising prices and compile economy-boosting measures by late December to address public frustration.
While she is the first woman serving as Japan's prime minister, she is in no rush to promote gender equality or diversity.
Takaichi is among Japanese politicians who have stonewalled measures for women's advancement. Takaichi supports the imperial family's male-only succession and opposes same-sex marriage and allowing separate surnames for married couples.
A protege of assassinated former Prime Minister Shinzo Abe, Takaichi is expected to emulate his policies including a stronger military and economy, as well as revising Japan's pacifist constitution. With her potentially weak grip on power, it's unknown how much Takaichi will be able to achieve.
Also an admirer of former British Prime Minister Margaret Thatcher, Takaichi was first elected to parliament in 1993 and has served in a number of senior party and government posts, including as ministers of economic security and internal affairs, but her diplomatic background is thin.
She is also an amateur heavy metal drummer who idolises bands like Iron Maiden and Deep Purple, yet she also wears blue suits to pay homage to her other hero, the former British prime minister Margaret Thatcher.
When Komeito left the governing coalition, it cited the LDP's lax response to slush fund scandals that led to their consecutive election defeats.
The centrist party also raised concern about Takaichi's revisionist view of Japan's wartime past and her regular prayers at Yasukuni Shrine despite protests from Beijing and Seoul that see the visits as lack of remorse about Japanese aggression, as well as her recent xenophobic remarks.
Takaichi has toned down her hawkish rhetoric. On Friday, she sent a religious ornament instead of going to Yasukuni.
Modi congratulates Takaichi
Prime Minister Narendra Modi on Tuesday congratulated Sanae Takaichi on her election as Japan's prime minister and said he looked forward to working closely to further "strengthen the strategic partnership between the two nations."
Takaichi, the first woman prime minister of Japan, succeeds Shigeru Ishiba.
"Heartiest congratulations, Sanae Takaichi, on your election as the Prime Minister of Japan," Modi said in a post on X.
"I look forward to working closely with you to further strengthen the India-Japan Special Strategic and Global Partnership. Our deepening ties are vital for peace, stability, and prosperity across the Indo-Pacific and beyond," Modi said.
(With inputs from PTI, AP)