In a historic and unprecedented event, Japan turned a new page in its political history today after Sanae Takaichi won the position of Prime Minister, becoming the first woman ever to hold the countrys highest office.

Takaichis victory followed a decisive parliamentary vote. According to Japans public broadcaster NHK, she secured 237 votes in the first round, eliminating the need for a runoff in the 465-seat lower house.

Her win came after the ruling Liberal Democratic Party (LDP) formed an alliance with the Japan Innovation Party, with reports indicating that the two sides signed a coalition agreement over the weekend.

According to Reuters, Takaichi agreed to support several policies of the Japan Innovation Party, including reducing the number of parliamentary seats, providing free secondary education, and freezing the food consumption tax for two years.

Earlier this month, Takaichi had faced a major political setback following the sudden split from Komeito the LDPs traditional coalition partner for more than 26 years.

Takaichi, one of the closest political allies of the late Shinzo Abe, is known for supporting the stimulus-oriented policies that defined the so-called Abenomics, raising expectations that she will pursue an expansionary approach to boost Japans stock market. However, such a stance could keep the yen under persistent pressure due to the continuation of ultra-loose monetary policy.

After winning the leadership of the ruling party, Takaichi pledged to strengthen Japans economy through massive public spending and criticized the Bank of Japans decision to raise interest rates.

Market Overview

The Japanese yen reacted negatively to Takaichis official rise to power, declining broadly against a basket of global currencies.

The Nikkei index hit a new record high, approaching the 50,000-point mark for the first time in history.