🔗 Share this article Japanese Equities Climb to Record Peaks In the Wake of Appointment of Business-Friendly Head The newly-elected leader has been named the new head of the nation's ruling Liberal Democratic Party. Japanese shares have reached a all-time high after the country's governing Liberal Democratic Party selected the pro-business politician as its new chief, positioning her to be Japan's upcoming leader. The benchmark Nikkei index gained around four and a half percent on Monday afternoon in the capital, after climbing above 47,000 for the first time. She, who has held high-ranking positions including minister for economic security and internal affairs minister, is recognized for her support of higher government spending and reduced interest rates. She is additionally a long-time admirer of ex- British leader the Iron Lady and her market-oriented approach to the economy. Investor Reaction and Economic Effects Investors applauded the news of her victory in the LDP leadership race, with shares climbing in property, tech and industrial companies. Although Japan's equities gained, the yen reached a historic low against the euro and fell by 1.7% against the US dollar. The day's market response was mostly a "knee-jerk reaction" to the possible appointment of Takaichi as the nation's leader, Japan economist an expert told. Although her economic plans to boost the economy through higher government spending could benefit companies, they may additional pressure on the yen as the country's debt rises, said Mr Koll. Leadership Change and Issues If confirmed in the coming weeks as the successor to Shigeru Ishiba, she will be Japan's first female prime minister. Mentored by former Prime Minister Abe, she has supported his economic vision - known as Abenomics - of high public spending and cheap lending. If confirmed in the role, Takaichi will have to navigate a difficult US-Japan relationship and see through a trade agreement with US President Donald Trump administration, which was earlier negotiated by the Ishiba government. She would additionally have to address a sluggish economy and households grappling with higher costs and stagnant income increases. With Trump expected to travel to Japan soon, the economist said she will be keen to negotiate a fresh deal with the American leader "to lower the dollar weaker and to strengthen the Japanese currency up."