Yen sinks, stocks rally: Japan marts greet Takaichi

Markets in Japan have been thrown into a new period of volatility after the surprise election of Sanae Takaichi, a pro-stimulus conservative hardliner, in the contest to lead Japan’s long-governing Liberal Democratic Party.

- RIVER AKIRA DAVIS

Sanae Takaichi, who is expected to become Japan's prime minister this month, has argued for a return to government stimulus and easy-money policies. AFP

Ms Takaichi, who is on track to become prime minister this month after her Saturday victory, distinguished herself from her campaign rivals with a distinct policy vision for Japan's economy, the world’s fourth-largest.

Though she softened her messaging significantly in recent days, Ms Takaichi, an acolyte of former Prime Minister Shinzo Abe, has long embraced the view that Japan should return to so-called Abenomics, which promoted more government stimulus and easy-money policies.

Speculation that she would implement a form of “neo-Abenomics,” including low interest rates, led the yen to weaken sharply against the dollar yesterday morning in Asia.