Japanese Prime Minister Sanae Takaichi's coalition swept to a historic electionwin on Sunday, paving the way for promised tax cuts that have spooked financial markets and military spending aimed at countering China, Reuters reported. 

The conservative Takaichi, Japan's first female leader who says she is inspired by Britain's "Iron Lady" Margaret Thatcher, delivered 316 seats of the 465 in parliament's lower house for her Liberal Democratic Party, its best ever result.

With coalition partner, the Japan Innovation Party, known as Ishin, Takaichi controls 352 seats and a supermajority of two-thirds of seats, easing her legislative agenda as she can override the upper chamber, where she does not have a majority, according to Reuters.