ISTANBUL

Japan's Nikkei 225 stock index climbed 4.75% to hit a record high of 47,944.76 on Monday after Sanae Takaichi was voted as the country's next leader on Saturday by the ruling Liberal Democratic Party, setting her up to become the nation's first female prime minister.

The index hit a record high amid expectations that Takaichi may ask the Bank of Japan to maintain its expansionary monetary policy.

Analysts noted that Takaichi advocates fiscal expansion and a weak exchange rate, indicating that this could further support the Japanese stock market. These developments led the dollar/yen exchange rate to rise above 150 for the first time since Aug. 1.

Gains in consumer cyclical companies, technology, and real estate drove the initial increase. Japan Steel Works was up 14% and Yaskawa Electric Corp. was up more than 20%. Kawasaki Heavy Industries and Mitsubishi Heavy Industries contributed 12% and 13%, respectively.

Following the announcement in September by Japanese Prime Minister and LDP leader Shigeru Ishiba that he would resign from his post, the ruling party elected its new leader.

Five candidates were in the race, including Takaichi, who has served in various Cabinet positions, and most recently as the economic security minister, as well as former Agriculture Minister Shinjiro Koizumi and Chief Cabinet Secretary Yoshimasa Hayashi.

Takaichi was elected the new LDP leader in the second round, defeating former Japanese Agriculture Minister Shinjiro Koizumi. Following the internal party leadership elections, Takaichi, who became the ruling party's leader, is expected to become Japan's new prime minister.