🔗 Share this article Japan's Stocks Surge to Record Peaks Following Naming of Pro-Business Leader The newly-elected leader has been named the new leader of the nation's ruling LDP. Japan's equities have reached a record peak after the nation's ruling Liberal Democratic Party named the pro-business politician as its latest leader, paving the way for her to be Japan's upcoming prime minister. The key Nikkei 225 index gained around four and a half percent on Monday in Tokyo, after climbing above 47,000 for the first time ever. She, who has served in senior government roles including minister for economic security and internal affairs, is known for her advocacy of higher public expenditure and reduced interest rates. She is additionally a long-time admirer of former UK prime minister Margaret Thatcher and her market-oriented approach to the economy. Investor Reaction and Economic Effects Investors applauded the news of her victory in the party leadership contest, with shares climbing in property, technology and industrial firms. While Japan's equities rose, the Japanese currency hit a historic low against the euro and fell by 1.7% against the US dollar. Monday's reaction was largely a "knee-jerk reaction" to the potential selection of Takaichi as the nation's leader, an economist Jesper Koll told. Although her policy proposals to boost the economy through higher public outlays could benefit businesses, they may further weaken the yen as Japan's debt rises, noted the economist. Leadership Transition and Issues Should confirmed later this month as the successor to Shigeru Ishiba, Takaichi will be the nation's first female leader. Mentored by former Prime Minister Shinzo Abe, she has supported his economic vision - called the Abe economic policy - of high public spending and cheap borrowing. If appointed in the role, Takaichi will have to navigate a difficult US-Japan ties and see through a tariff deal with US President Donald Trump administration, which was previously agreed by the previous administration. She would additionally have to contend with a sluggish economic growth and families grappling with higher costs and slow wage growth. As the US president expected to travel to Japan later this month, Mr Koll said she will be eager to discuss a new agreement with the US president "to lower the US currency weaker and to strengthen the yen stronger."