Japan's First Female PM Ignites Market Rally

Sanae Takaichi made history by becoming Japan's first female Prime Minister, leading to a remarkable surge in market confidence. The Nikkei index soared to unprecedented highs, marking a 4.5% increase as investors expressed approval of her victory.

Gaining a commanding majority in parliament, Takaichi's Liberal Democratic Party, alongside the Japan Innovation Party, secured 352 seats. This supermajority empowers her to push forward defense spending, tax cuts, and corporate reforms, reinforcing economic growth if promises are fulfilled.

However, the financial strategies prompting this optimism draw concerns, as potential debt financing hit government bond yields to levels unseen since 1996. This underlines challenges Takaichi faces in maintaining economic momentum while navigating global and domestic pressures.