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Japan's shares have hit a all-time peak after the country's ruling Liberal Democratic Party selected the pro-business politician as its latest leader, paving the way for her to become Japan's next leader.

The key Nikkei index was up by around 4.5% on Monday in the capital, after climbing past forty-seven thousand for the first time ever.

Takaichi, who has held senior government roles including economic security minister and internal affairs, is recognized for her advocacy of increased government spending and reduced interest rates.

She is also a longstanding supporter of ex- British prime minister the Iron Lady and her free market philosophy to economics.

Investor Reaction and Financial Impact

Market participants welcomed the announcement of her victory in the LDP leadership race, with stocks rising in property, technology and industrial companies.

Although Japanese stocks rose, the Japanese currency reached a record low against the European currency and dropped by 1.7% against the US dollar.

Monday's market response was largely a "knee-jerk reaction" to the potential selection of Takaichi as prime minister, an economist an expert commented.

Although her economic plans to stimulate the economy through higher government spending could benefit companies, they may additional pressure on the yen as Japan's debt increases, noted the economist.

Leadership Transition and Challenges

Should approved later this month as the replacement to Shigeru Ishiba, Takaichi will be the nation's first female leader.

Mentored by late leader Abe, she has championed his economic vision - called Abenomics - of increased public spending and cheap borrowing.

Should appointed in the role, Takaichi will have to navigate a difficult bilateral ties and implement a tariff deal with American leader Donald Trump government, which was previously agreed by the Ishiba government.

She would additionally have to contend with a sluggish economic growth and families grappling with rising expenses and slow income increases.

As the US president scheduled to visit the country later this month, Mr Koll stated Takaichi will be keen to discuss a fresh deal with the US president "to lower the dollar down and to get the Japanese currency up."