Sanae Takaichi has emerged as the frontrunner to become Japan's first female prime minister after winning the leadership of the ruling Liberal Democratic Party (LDP). Takaichi, a former internal affairs minister, secured her position in a runoff vote held on Saturday, defeating Agriculture Minister Shinjiro Koizumi. Takaichi received 185 votes, while Koizumi garnered 156.

The LDP is the largest party in Japan's parliament, which positions Takaichi to succeed Prime Minister Shigeru Ishiba. However, the party and its coalition partner have lost their majorities in both chambers, making it necessary for Takaichi to seek cooperation from opposition members to govern effectively. A parliamentary vote to officially elect the new prime minister is scheduled for October 15.

Takaichi, 64, is known for her hardline nationalist views and is a proponent of the economic policies known as "Abenomics," which were introduced by former Prime Minister Shinzo Abe. She has criticized the Bank of Japan's recent interest rate increases, suggesting that her approach could lead to significant changes in Japan's economic strategy. This stance may raise concerns among investors, particularly given Japan's substantial national debt.

In contrast, Koizumi, 44, is seen as a more moderate candidate. He has promised to increase wages and provide relief to households facing inflation, but he plans to do so within the fiscal constraints established by Ishiba's administration. Koizumi has defended a controversial investment deal with the United States that involved lowering tariffs in exchange for Japanese investments.

Takaichi's nationalistic positions, including her visits to the Yasukuni shrine, have drawn criticism from neighboring countries like South Korea and China, which view these actions as reminders of Japan's militaristic past. Polling indicates that while Koizumi has stronger support within the parliamentary party, Takaichi is favored by the party's grassroots members. The outcome of this leadership race reflects the ongoing challenges the LDP faces in regaining public trust amid rising prices and competition from opposition parties.