Tokyo: Japanese stocks rose more than 4% on Monday after the ruling party chose Sanae Takaichi as its leader, likely to be the first female prime minister. The Nikkei 225 index rose 4.3% to 47,710.09 points in early morning trading, while Hong Kong's Hang Seng index fell 0.1% to 27,119.36 points.

According to Yemen News Agency, Sanae Takaichi's selection as the leader of the Liberal Democratic Party has sparked optimism among investors, leading to the notable surge in the Nikkei 225 index. Takaichi is poised to become the next prime minister, given that the Liberal Democratic Party holds the largest number of seats in the lower house, despite not having a majority.

This development marks a significant moment in Japanese politics, as Takaichi is set to become the country's first female prime minister. The market reaction reflects investor confidence in her leadership and potential policy directions that may follow under her administration.