With sanae takaichi being elected president of the Liberal Democratic Party of Japan on October 4th and about to become Japan's first female prime minister, Tokyo's financial market experienced violent shocks in an instant. Some people even call her Margaret Thatcher of Japan.
The yen opened by 1.2%, dropped without resistance to 150 points, while the index of 225 surged by 5%, breaking the 47,000 point mark for the first time.
Takashi's victory marks a major change in Japan's political landscape, not only because she is the first female president in the history of the Liberal Democratic Party, but also because she represents the continuing influence of Abenomics.
Japan’s chief economist,相田拓司, of the French Agricultural Credit Bank, noted that influenced by the election, “the market is expected to have massive fiscal spending, while reducing the bank’s stakes on raising interest rates at the policy meeting on October 29-30.”
The economic policy blueprint of high prices and early seedlings can be summarized as: the dual stimulus of monetary easing and fiscal expansion.
In terms of monetary policy, Gaoshi and Zaomiao clearly opposed rapid interest rate hikes. She once said,"If policy rates rise sharply, companies may not be able to raise funds for investment, and young people may be in trouble because of rising mortgage rates."
In terms of fiscal policy, Gaoshi Zaomiao advocated raising the minimum income tax threshold, expanding local government subsidies, and significantly reducing consumption tax.
As of August 2025, Japan's core consumer price index (not including fresh food but including energy) still grew by 2.7 per cent, and Tokyo's CPI exceeded 3.5 per cent.
It seems that after 30 years of great deflation, Japan has become deeply afraid of deflation. Up to now, it still does not dare to fight inflation. I think Japan's inflation is likely to soar to more than 5%. For Japan, this is epic inflation.
I think that the high market was chosen out of the backrest. some believe that the high market was compared with the 2022 elected British prime minister of Trass, Trass also lived with "Madame Thatcher II" and introduced massive tax cuts, resulting in British stock debt aggregation and resigned for only 45 days.
In fact, the previous Japanese prime minister, Shapiro Shimo, was also chosen out of the backyard, his main task was to sign a trade agreement with the United States, thoroughly sell Japan's interests clean, and then shadow down.
Will Takashi Saami follow the mistakes of Terras and become another "short-lived prime minister"?
Whether her economic policies will push Japan deeper into predicament and make her a "back-of-pot man" for Japan's economic deterioration are questions worthy of close attention in the coming months.