Japanese stocks surged after the country’s ruling party chose its next leader — and likely next prime minister — amid growing investor buoyancy over prospects for one of the world’s largest economies.
The LDP, which has ruled Japan largely uninterrupted since World War II, put Sanae Takaichi on track to be the country’s first female prime minister.
She inherits a dizzying array of challenges, including a fast-aging population and worries over Chinese aggression. Yet economists note the country has removed major barriers to business, manufacturers are feeling more upbeat, and monetary policy is normalizing: The Nikkei 225 index hit a record following Takaichi’s selection. “We are bullish on Japan,” Apollo’s chief economist wrote.