Takaichi faces multiple challenges if taking office as PM: expert

China

Takaichi faces multiple challenges if taking office as PM: expert

2025-10-05 13:29 Last Updated At：18:57

A Japanese expert said that Sanae Takaichi, who just won Japan's ruling Liberal Democratic Party (LDP) presidential election on Saturday, could face several challenges from politics, economy to livelihood if she takes office as Japan's first female prime minister.

As the country's former Economic Security Minister, Takaichi is the first woman winner of presidency of the long-dominant ruling party in Japan.

Even though the ruling bloc has failed to secure a majority in both chambers of the parliament, the new LDP leader is almost certain to become the country's next prime minister since the LDP remains the largest party in Japan.

In an interview with China Central Television (CCTV) in Tokyo on Saturday, Junichiro Kusumoto, a professor at the Faculty of Law of Toyo University, said Takaichi has to take on multiple challenges if she takes office.

"So far, the Japanese media have been chasing after the LDP's political corruption scandal. But I don't think the people's dissatisfaction is confined to this problem. There are also problems of price hike and lack of transparency in the usage of tax money," said Kusumoto.

The LDP is also challenged with how to boost economy and improve livelihood, he said.

"I think the living burden of people could be relieved to some extent with fiscal policies, especially as the rice price has remained stubbornly high. I hope the Japanese government will take practical measures in this regard," Kusumoto said.

He pointed out that since the LDP has lost the majority in both chambers of the parliament, it is essential for Takaichi to win the prime ministerial designation vote in mid-October.

"Even if she has become the president of LDP, it doesn't mean that she is bound to become the prime minister. If the minority of the LDP forms an alliance with opposition parties, it is possible to see different results in the prime ministerial designation vote," Kusumoto said.

U.S. stocks close mixed following steep declines

U.S. stocks ended mixed on Friday following the market's steepest declines in a month.

The Dow Jones Industrial Average fell 309.74 points, or 0.65 percent, to 47,147.48, marking its second straight drop but still notching a weekly gain. The S and P 500 slipped 3.38 points, or 0.05 percent, to 6,734.11. The Nasdaq Composite Index rose 30.23 points, or 0.13 percent, to 22,900.59, snapping a three-day losing streak.

Seven of the 11 primary S and P 500 sectors finished lower, with materials and financials leading the laggards, down 1.18 percent and 0.97 percent, respectively. Energy and technology outperformed, advancing 1.37 percent and 0.74 percent, respectively.

The tech trade regained some footing after several days of pressure. AI leaders Nvidia and Oracle rebounded from their losses in the prior session, as did Palantir Technologies and Tesla, both of which had dropped more than 6 percent on Thursday.

Those sharp declines had briefly put the Nasdaq on course to break its seven-week winning streak, but Friday's recovery lifted the index back into positive territory for the week. Concerns about the sustainability of the AI rally have intensified, with the recent rout in cloud-computing giant Oracle heightening worries over stretched valuations, heavy reliance on debt financing, and soaring capital expenditure plans across the sector.

"AI is truly testing the limits of Wall Street spreadsheets right now," David Krakauer, vice president of portfolio management at Mercer Advisors, told CNBC, adding that investors pricing in "so much of this future growth that they really can't measure yet" just spurs an "environment of swings."

Adding to the market unease, traders continued to assess the Federal Reserve's upcoming policy decision. Market pricing now puts the odds of a quarter-point rate cut in December at below 50 percent, which is sharply lower than the roughly 95 percent probability seen a month ago, according to the CME FedWatch Tool.