Japan’s Takaichi to opt for stability in first reshuffle since taking over LDP

Japanese Prime Minister Sanae Takaichi is set to make limited changes to her cabinet on Wednesday, her first reshuffle since assuming leadership of the ruling Liberal Democratic Party (LDP) about a year ago. Sources indicate Takaichi will likely retain influential figures such as ex-Prime Minister Taro Aso as vice-president and his brother-in-law, Shunichi Suzuki, as secretary general.

Policy chief Takayuki Kobayashi and Defense Minister Shinjiro Koizumi are also expected to stay on in their positions. Takaichi, who became Japan's first female prime minister in October 2025, is likely to prioritize continuity as she faces an extensive legislative agenda before the year's end. The reshuffle precedes a crucial Diet session starting early October, where the LDP and Japan Innovation Party may discuss a reduction in the consumption tax on food products from 8% to 1% for two years beginning April, as well as a contentious political reform bill that previously sparked opposition opposition.

Markets are closely watching how Cabinet Minister Minoru Kiuchi, a proponent of expansionary fiscal and monetary policy, will fare in the cabinet reshuffle, as his role could provide insight into Takaichi's spending priorities.