Japan Welcomes First Female PM, Sanae Takaichi, as Markets Surge
Japan has elected its first female Prime Minister, Sanae Takaichi, who previously served as Minister for Internal Affairs and Communications and Minister of Economy, Trade and Industry. The stock market reacted positively to her win, with the Nikkei surging nearly five percent. However, the Dax started negatively on Monday, and the euro weakened against the dollar.
The Nikkei's surge was driven by expectations of market-friendly policies from Takaichi, who took office on October 4, 2025. She had been serving as the President of the Liberal Democratic Party (LDP) since 2025. In contrast, the Dax opened cautiously but turned negative, closing at 24,285 points, a 0.4 percent decrease from Friday.
Analysts had anticipated a positive trading day due to robust gains in Asia and hopes for interest rate cuts. However, the euro weakened, with one euro worth 1.1678 US dollars and one dollar worth 0.8563 euros. Market sentiment was mixed, with the stock market today's performance being a concern, but not yet causing significant market displeasure. Despite this, Jochen Stanzl of CMC Markets believes the longer the shutdown lasts, the higher the chance of two rate cuts by the end of the year.
Sanae Takaichi's election as Japan's first female Prime Minister has sparked market optimism, with the Nikkei surging nearly five percent. However, the Dax and the euro showed weakness. The stock market remains watchful of the stock market today's duration and its potential impact on interest rates.
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