Japan: Japan's Nikkei 225 stock index surged 4.75% to achieve a record high of 47,944.76 on Monday, following the election of Sanae Takaichi as the new leader of the ruling Liberal Democratic Party. This victory positions her to become the first female prime minister of Japan.

According to Anadolu Agency, the stock index reached this milestone due to expectations that Takaichi might encourage the Bank of Japan to continue its expansionary monetary policy. Analysts have observed that Takaichi supports fiscal expansion and favors a weaker yen, which could further bolster the Japanese stock market. These factors have contributed to the dollar/yen exchange rate surpassing 150 for the first time since August 1.

The initial rise in the stock market was led by gains in consumer cyclical companies, technology, and real estate sectors. Notable performers included Japan Steel Works, which increased by 14%, and Yaskawa Electric Corp., which rose by more than 20%. Kawasaki Heavy Industries and Mitsubishi Heavy Industries also made significant contributions, with increases of 12% and 13%, respectively.

The leadership change was prompted by the announcement in September from Japanese Prime Minister and LDP leader Shigeru Ishiba, who declared his resignation. The ruling party subsequently held elections to choose a new leader, with five candidates in the running, including Takaichi, former Agriculture Minister Shinjiro Koizumi, and Chief Cabinet Secretary Yoshimasa Hayashi.

Takaichi emerged victorious in the second round of the leadership elections, defeating former Agriculture Minister Shinjiro Koizumi. With her election as the leader of the ruling party, Takaichi is now poised to become Japan's new prime minister.