Japan’s ruling party has chosen hardline conservative Sanae Takaichi to lead, putting her on track to make history as the country’s first female prime minister, a decision likely to unsettle investors and regional neighbors.

The Liberal Democratic Party, which has ruled Japan for almost all of the postwar era, elected Takaichi, 64, to regain trust from a public angered by rising prices and drawn to opposition groups promising stimulus and clampdowns on migrants.

A vote in parliament to choose a replacement for outgoing Shigeru Ishiba is expected on October 15. Takaichi is favoured as the ruling coalition has the largest number of seats.

Inherits party in crisis

Takaichi, the only woman among the five LDP candidates, prevailed in a runoff against the more moderate Shinjiro Koizumi, 44, who was bidding to become Japan's youngest modern leader.