Japan’s Nikkei Surges as Sanae Takaichi Becomes Leader: Market Optimism Soars

## Overview The Liberal Democratic Party (LDP; Jiyū-Minshutō) is Japan’s largest and most influential political party, having dominated the country’s political landscape for nearly seven decades since its founding in 1955[1][5][7]. As a conservative to moderate force, the LDP has shaped Japan’s post-war recovery, guided its transformation into a global economic powerhouse, and maintained a steadfast alliance with the United States[2][4][7]. The party’s broad appeal—encompassing both nationalist and progressive factions—allows it to adapt to shifting political and economic climates, much like major U.S. parties[4]. ## What the Organization Does The LDP’s core mission is to promote economic growth, national security, and social stability through policies that favor business, low taxes, and government support for industry[4][5]. It prioritizes a close relationship with the U.S., advocates for export-driven growth, and has historically resisted sweeping social reforms such as the legalization of same-sex marriage[1]. The party also supports constitutional revision to expand Japan’s military role internationally, reflecting evolving national security priorities[4]. ## History Formed in 1955 through the merger of the Liberal Party and the Japan Democratic Party, the LDP was created to counter the rising influence of socialist parties[3][6]. It quickly established itself as the dominant political force, overseeing Japan’s remarkable post-war economic recovery and industrialization[7]. The LDP’s uninterrupted rule from 1955 to 1993 was punctuated only by brief opposition-led governments in 1993–94 and 2009–12[2][7]. Its longevity is attributed not only to policy successes but also to a robust political machine built on patronage and close ties with business and agricultural interests[6]. ## Key Achievements Under LDP leadership, Japan became the world’s second-largest economy by the 198