epa12466956 Japan's ruling Liberal Democratic Party (LDP) President Sanae Takaichi (R) and Japan Innovation Party leader Hirofumi Yoshimura pose after signing a coalition agreement at the Parliament in Tokyo, Japan, 20 October 2025. Following the agreement between the two parties, LDP President Sanae Takaichi is poised to become Japans first female prime minister on 21 October 2025. EPA/FRANCK ROBICHON 
Takaichi, a hardline conservative and an acolyte of former Prime Minister Shinzo Abe, is now almost certain to become prime minister at a parliamentary vote on Tuesday after her Liberal Democratic Party on Monday agreed to a coalition deal with the right-wing Japan Innovation Party, known as Ishin.
Takaichi's victory will make her the first female prime minister in a country where the top echelons of politics and business are still overwhelmingly male-dominated. Her election will also likely mark a harder tack to the right in a country increasingly worried about rising prices, lacklustre growth and immigration.
Takaichi plans to appoint Katayama, a former finance ministry official-turned-lawmaker, as finance minister, broadcaster FNN reported. Katayama would become Japan's first female finance minister. She chairs the ruling Liberal Democratic Party's research commission on the finance and banking systems.
She has a strong background in economic and finance fields, having served as minister in charge of Local Economic Revitalisation under Abe.
Lawmakers will vote later in parliament to elect the new prime minister. With a combined 231 seats in parliament's dominant lower house, the coalition falls two votes short of a majority. But that tally is almost certainly enough for Takaichi to win the vote.
Equity markets have been emboldened by the prospect of Takaichi, who is seen as likely to spend more to try and jumpstart the economy. The Nikkei share average .N225 hit another record high on Tuesday.
(Reporting by Tokyo Newsroom; Writing by David Dolan; Editing by Stephen Coates)