In a groundbreaking achievement on Tuesday, Sanae Takaichi won the parliamentary vote, ushering in a new era as the first woman to serve as Japan’s prime minister.

During the initial round of voting, Takaichi received 237 votes, successfully bypassing the necessity for a second round in the 465-seat Lower House, as reported by NHK, Japan’s public broadcaster.

Her triumph follows an alliance between the ruling Liberal Democratic Party and the Japan Innovation Party, who reportedly reached a coalition agreement over the weekend. Reuters notes that Takaichi has committed to supporting JIP initiatives, including reducing parliamentary seats, providing free high school education, and implementing a two-year suspension of the food consumption tax.

Tobias Harris, the founder and principal of Japan Foresight, a risk advisory firm, shared insights on CNBC’s “Squawk Box Asia,” suggesting that the JIP may hesitate to join the cabinet. He highlighted the potential risk of aligning with an LDP that continues to face historically low approval ratings and lacks public trust.

Domestic Japanese media has also reported that the JIP is not looking at cabinet positions in the new administration, and will instead support the government from the outside.

Should the JIP not like the LDP’s approach, it will be easier for them to exit the coalition, Harris said.

In the Ishiba administration, the LDP suffered heavy electoral losses, losing its majority in both the upper and the lower house.

Japan’s Nikkei 225, which had risen 1.5% earlier during the day, erased its gains, while the benchmark 10-year government bond yields dipped 1.6 basis points to 1.654%. The yen weakened 0.33% to 151.25.

Takaichi’s path to the country’s top job has been challenging.

In the 2024 LDP presidential race, Takaichi lost to Shigeru Ishiba. She won the leadership of the party in September this year, defeating Agriculture Minister Shinjiro Koizumi after Ishiba announced his resignation.

But on Oct. 10, the Komeito party abruptly exited its alliance with the LDP, ending a relationship going back to 1999, putting Takaichi’s fate in a limbo.

A hardline conservative, Takaichi has been widely labeled as an apostle of “Abenomics,” the economic strategy of the late Prime Minister Shinzo Abe, which espoused loose monetary policy, fiscal spending and structural reforms.

She had previously criticized the Bank of Japan’s plan to raise interest rates during the 2024 LDP leadership race, although BOJ Governor Kazuo Ueda has said that the central bank would set rates “without any preconceptions.”

On the geopolitical front, Takaichi has called for a hardline stance toward China and is also in favor of revising Japan’s pacifist constitution.

Her previous visits to the controversial Yasukuni Shrine, which honors Japan’s war dead, including convicted war criminals, have drawn criticism from China and South Korea, which see the site as a symbol of Tokyo’s wartime aggression.

Takaichi is going to be “very, very careful” in how she communicates her views, especially on foreign policy,” said Kei Okamura, managing director and portfolio manager of Neuberger Berman, told CNBC earlier this month.

“Her views on China and Korea have also been very well flagged. But she also understands that she has to maintain very good relations with all these countries, especially also with the United States, just because all of them have a very big impact in terms of Japan’s biggest export destinations.”