Right-wing conservative Sanae Takaichi is on the cusp of becoming Japan’s first female prime minister after the opposition Ishin party agreed to back her, triggering a rally in the stock market and a weaker yen.
Hardline conservative Sanae Takaichi is nearly certain to become Japan’s first female prime minister after the right-wing opposition Japan Innovation Party (Ishin) declared its readiness to support her premiership.
“I told Takaichi that we should move forward together,” Ishin leader and Osaka governor Hirofumi Yoshimura told reporters, adding that he would meet Takaichi at 6 p.m. (0900 GMT) to finalise the alliance.
Investor optimism over a prospective deal that may spur higher government spending depressed the yen and pushed shares higher, with the Nikkei index rising almost 3% to a record high.
The coalition pact would deliver a combined 231 seats in the lower house — just two short of a majority — though Takaichi may still need support from other opposition parties to pass a supplementary budget.