Japan's Takaichi Faces Growth Test Amid Debt and Demographics

Sanae Takaichi’s landslide win gives her a strong House majority to push faster growth through more spending and tax cuts, but funding the plan risks higher debt and inflation as the Bank of Japan cools ultra-low rates. Markets reacted positively to the win, with stocks rising and the yen strengthening, yet analysts warn the path is delicate: Japan’s aging, shrinking workforce and constrained immigration complicate growth, so the government is likely to lean on automation and greater participation by women and older workers while balancing ties with the US and China to protect supply chains and energy costs.