Japan’s politics have reached a turning point. After winning the leadership vote on October 4, 2025, Sanae Takaichi became the first woman to lead Japan’s ruling Liberal Democratic Party (LDP).
She is a conservative veteran and a close friend of the late Prime Minister Shinzo Abe. Her win puts her in line to become Japan’s first female prime minister, which could change the country’s political and economic course.
Key Takeaways
- Sanae Takaichi becomes the first woman to lead Japan and likely its first female prime minister.
- Her leadership style and ideology draw inspiration from Margaret Thatcher, Britain’s “Iron Lady.”
- Markets reacted positively, with the Nikkei 225 surging above 47,000 points.
- She faces economic and political challenges, including high national debt and lack of majority in parliament.
- Takaichi plans to strengthen defense, maintain close U.S. ties, and pursue pro-growth policies.
A Leadership Style Based on Thatcher
It’s well known that Takaichi looks up to Margaret Thatcher. She met the former British leader in 2013 and calls her autobiography a “treasure” all the time. She thinks of herself as Japan’s Iron Lady, someone who wants to mix toughness with useful change.
But experts disagree on whether she can really have the same long-term impact as Thatcher or if she will have to deal with the problems that short-lived leaders like Liz Truss face.
Takaichi is 64 years old and takes office after the LDP lost support in recent elections because of scandals and the economy being weak.
She has to work with the opposition to get important laws passed because there isn’t a clear majority. A vote in Parliament in the middle of October will confirm her as prime minister.
From Rock Music to the Diet
Takaichi had a colorful life before getting into politics. He was a TV host, a heavy metal drummer, and a biker. She became a member of parliament in 1993 and later joined the LDP.
She held important positions, such as minister of economic security. She is a fan of the Hanshin Tigers and comes from Nara. She often talks about her working-class roots, like how her mother was a police officer.
Economic Vision and How the Market Reacted
Takaichi wants to keep Abenomics going, with a focus on public spending, tax cuts, and easy money policy to boost growth. After she won, the Nikkei 225 rose more than 4%, reaching a record high of over 47,000 points, led by the technology and real estate sectors.
The yen, on the other hand, fell to about 149 per dollar because investors thought the Bank of Japan would raise rates later than expected.
Japan’s debt, which is now more than 260% of GDP, makes people worry about inflation and the long-term stability of the country’s finances. Still, her focus on public-private partnerships is meant to increase investment, job creation, and innovation, even though many people are still having trouble with rising living costs.
Defense and diplomacy
Takaichi wants to change Japan’s pacifist constitution and raise defense spending closer to NATO levels because China and North Korea are becoming more of a threat. Her trips to the Yasukuni Shrine, which honors Japan’s war dead, including convicted war criminals, could put more strain on relations with China and South Korea.
She wants the U.S. to have better relationships with other countries and supports a free and open Indo-Pacific, working with allies like Australia and India. People think that her tough stance on China is in line with Washington’s strategic goals, but it could make tensions in the region worse.
A Look at Society and Culture
Takaichi is still socially conservative in Japan. She is against same-sex marriage and married couples having different last names, which is different from how most people in Japan feel right now.
She has promised to put more women in cabinet positions, though, because Japan is not doing well in terms of gender equality around the world. Some people say that her policies may not do enough to help women’s rights.
The Road Ahead
Takaichi’s leadership could mean a change for Japan toward stronger defense, more assertive diplomacy, and reforms based on the market. Her determination, which is similar to that of Margaret Thatcher, could bring her party together or make the divisions worse.
She said after her win, “The hard work starts now.” People all over the world will be watching to see if she makes real changes or just keeps going with the same cautious reforms.
