Who is Sanae Takaichi? The first woman began to direct the Japanese government

Having won the presidency of the Liberal Democratic Party leader in Japan, Sanae Takaichi is about to become the first Prime Minister of the country.

Takaichi, a conservative ally and close to the late Shinzo Abe, said on Saturday that she “works, would work,” to “transform” the anxieties of people about their daily life and the future in hope “.

Its ascent occurs at a time of economic tension at home and tense relations abroad – and tests if Japan doubles the conservative and pro -abnomic program that has defined the last decade.

Takaichi’s victory follows the resignation of Prime Minister Shigeru Ishiba after the LDP lost its majority in the two chambers of Parliament in 2024 and 2025, leaving it to govern as a minority.

This also means that when the diet invokes itself on October 15, the opposition parties could theoretically block Takaichi’s confirmation as Prime Minister, although analysts say that the risk of this is low.

Takaichi’s first task is to guarantee the support of at least one opposition party to form a working majority, BMI research firm said on Monday.

However, the opposition parties are faced with a dilemma: joining the LDP in a coalition could increase their influence, but risking alienating the dissatisfied voters of the ruling party.

If Takaichi concludes an agreement with the opposition, BMI has said that his government will face several challenges, including a cost of living crisis, managing security and trade relations with US President Donald Trump, as well as domestic concerns concerning the growing number of foreigners residing or visit Japan.

Takaichi is considered to be a supporter of “Abenomics”, the economic strategy of Shinzo Abe, who married the cowardly monetary policy, budgetary expenses and structural reforms.

She had previously criticized the Bank of Japan’s plan to increase interest rates, which the Governor of Boj, Kazuo Ueda, previously declared on Friday that the central bank would fix rates “without any preconceived idea”.

The BOJ put an end to its negative interest rate rate in March 2024 and recently retained rates at 0.5%.

“We can already guess that it will not reduce inflation, because if it wants to double on abenomics of the past, which means a weaker yen, which means more government spending, which probably means more inflation,” said William Pesek, the author of Japanization: what the world can learn from lost decades in Japan.

The LDP chose Takaichi because he thought she was the best person to deal with US President Donald Trump, Pesek, a long -standing observer, told “Squawk Box Asia” from CNBC.

“She was probably the best option to compete with Trump at the time very tense between Trump and the rest of the world,” said Pesek.

Last week, Takaichi would have expressed doubts about the American-Japan trade agreement, and said on a Fuji television program that a “DIY” of the agreement was not outside table, referring to the investment commitment of $ 550 billion in Japan.

While Citi analysts have planned a short-term rally of approximately 47,000 for the Nikkei 225, they warned that Japanese actions are not undervalued, with the Topix price / profit ratio at 12 months almost a historic peak of 16 times.

Analysts expect consumers, defense and export actions to benefit from a Takaichi government, while financing and real estate actions could cope with winds.

Takaichi called for a hard position towards China and is also in favor of the revision of the Pacifist Constitution of Japan, in particular article 9, which has renounced the law of Japan to war.

The former Minister of Economic Security is also considered friendly to Taiwan, who could rush the feathers in Beijing. Taiwan president, Lai Ching-Te, described Takaichi as a “Taiwan firm friend” in a Japanese position on Saturday, and expressed the hope that the two parties “can raise Taiwan-Japon relations at a new level”.

His previous visits to the controversial sanctuary of Yasukuni, which honors the dead of the Japan war, including war criminals, have aroused criticism from China and South Korea, which consider the site as a symbol of the warning time of Tokyo.

Takaichi will be “very, very prudent” in the way she communicates her opinions, in particular on foreign policy, “Kei Okamura, director and director of Portfuille de Neuberger Berman told CNBC.

“Her opinions on China and Korea have also been very well reported. But she also understands that she must have very good relations with all these countries, in particular with the United States, simply because all have a very large impact in terms of larger export destinations in Japan.”

He added that Takaichi did not abandon his strong nationalist opinions. “This is something that I think we continue to look more closely, especially during the first year and potentially the second year of this administration.”