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Japanese equities have reached a record peak following the country's ruling Liberal Democratic Party appointed the pro-business politician as its new chief, paving the way for her to become the country's next prime minister.

The key Nikkei index rose by around four and a half percent on Monday afternoon in Tokyo, after rising above forty-seven thousand for the first time ever.

She, who has held senior government roles including economic security minister and internal affairs, is known for her support of higher government spending and reduced borrowing costs.

She is additionally a longstanding admirer of ex- UK prime minister Margaret Thatcher and her free market approach to the economy.

Investor Reaction and Financial Impact

Market participants applauded the news of her win in the party leadership contest, with shares rising in property, technology and heavy industry companies.

While Japanese stocks rose, the yen reached a record low against the European currency and dropped by one point seven percent against the US dollar.

Monday's reaction was largely a "knee-jerk reaction" to the possible appointment of the leader as prime minister, Japan economist an expert commented.

Although her economic plans to stimulate the economic growth through increased government spending could help businesses, they may further weaken the currency as Japan's national debt rises, noted Mr Koll.

Political Transition and Issues

Should approved in the coming weeks as the replacement to Shigeru Ishiba, she will be the nation's first woman prime minister.

Mentored by former leader Shinzo Abe, she has championed his economic vision - called the Abe economic policy - of high government expenditure and cheap borrowing.

If confirmed in the position, she will have to manage a difficult bilateral relationship and implement a tariff deal with US President Donald Trump government, which was previously agreed by the previous administration.

She would also have to address a slow economic growth and families grappling with higher costs and stagnant income increases.

With the US president expected to visit Japan soon, the economist stated Takaichi will be eager to negotiate a new agreement with the American leader "to get the US currency weaker and to strengthen the Japanese currency stronger."