**Japan's Stock Market Soars: A New Era with Pro-Business Leader Sanae Takaichi?**

Japanese stocks have surged to a record high following the ruling Liberal Democratic Party’s (LDP) appointment of Sanae Takaichi as its new leader, positioning her to potentially become Japan’s next prime minister. The Nikkei 225 index closed up 4.75%, surpassing 47,000 for the first time in history. Takaichi, a proponent of increased government spending and lower borrowing costs, has held notable government positions, including minister for economic security.

Celebrated for her admiration of former UK Prime Minister Margaret Thatcher, Takaichi’s pro-business policies have sparked confidence among investors, leading to notable gains in sectors such as real estate, technology, and heavy industry. However, while the stock market prospered, the yen saw a decline, hitting a record low against the euro and dropping 1.7% against the US dollar.

Analysts suggest the market’s positive response may be a knee-jerk reaction to Takaichi’s leadership, emphasizing that her proposed economic strategies, though beneficial for businesses, might contribute to a weakening yen amid rising national debt. If confirmed as prime minister, she would make history as Japan’s first female leader and continue the Abenomics approach championed by her mentor, the late Prime Minister Shinzo Abe.

Takaichi’s tenure would coincide with pressing challenges, such as improving the US-Japan relationship and renegotiating tariffs set during Shigeru Ishiba’s administration. As Takaichi prepares for a meeting with US President Donald Trump later this month, her focus will be on securing favorable agreements to stabilize the yen and invigorate the Japanese economy, which is currently facing sluggish growth and rising costs for households.