Marketplace All-in-One Record stocks welcome Japan’s first female prime minister
Oct 21, 2025
Japan has made history with the election of its first female prime minister, Sanae Takaichi, prompting a surge in the Nikkei 225 index. However, she faces tough challenges, including inflation and a declining population. Takaichi is also adopting a more assertive stance on security issues regarding China and South Korea. Meanwhile, a federal pullback in green tech funding in the U.S. impacts local economies, revealing broader consequences for workers in affected areas.
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Markets Rally For New PM
- Japan's Nikkei 225 hit a record high after electing Sanae Takaichi as its first female prime minister.
- Investors cheered despite Takaichi facing inflation, low growth, and an aging population, per William Lee Adams and Nick Marsh.
Policy Tension Over Inflation
- Takaichi favors tax cuts, more fiscal spending, and low interest rates.
- Those policies clash with anti-inflation measures, complicating her economic toolkit, Nick Marsh warns.
Inflation Tops The Agenda
- Inflation and rising food prices are now top economic concerns in Japan.
- Nick Marsh notes wages haven't kept up, creating bread-and-butter pressure for the new government.