Japanese stocks have hit a record high after the country's ruling Liberal Democratic Party (LDP) named Sanae Takaichi as its new leader, positioning the pro-business politician to be Japan's next prime minister, BBC reported.

The benchmark Nikkei 225 index jumped by more than 4% on Monday morning in Tokyo as it rose above 47,000 for the first time.

Takaichi is known for her support of higher public spending and lower borrowing costs.

She is also a long-time admirer of former UK prime minister Margaret Thatcher and her free market approach to economics, according to BBC.