If confirmed by Japan’s National Diet this month, she will replace outgoing prime minister Shigeru Ishiba, who has taken the blame for two election defeats that has left the government in a minority in both houses.

The new party president is still likely to become prime minister because the LDP still has the most seats in the lower house

The move is seen as an attempt to avoid a split within his governing Liberal Democratic Party, which lost its upper house majority in an election in July.

The first female or youngest-ever PM could be elected as part of five candidates running for the LDP's top job.

TOKYO (Reuters) -Japanese shares are expected to keep setting records even as the nation's currency and bonds sputter after fiscal dove Sanae Takaichi was elected on Saturday to lead the ruling party and likely become prime minister.

Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung have emphasized the need for stronger cooperation between their countries.

Japan's Prime Minister Shigeru Ishiba has announced he is stepping down after less than a year in the role, following two major election losses. The move comes a day before his Liberal Democratic Party (LDP) was expected to vote on whether to hold an internal leadership vote that could have forced him out.