Sanae Takaichi has been elected Japan's prime minister by parliament, making her the first woman to hold the office.

The 64-year-old won a clear majority on Tuesday - 237 votes in the powerful Lower House and another 125 in the Upper House - as leader of the ruling Liberal Democratic Party (LDP).

A staunch conservative and admirer of the late former British PM Margaret Thatcher, Takaichi takes over at a challenging economic moment as Japan grapples with rising cost-of-living and a frustrated public.

It's also been an uncertain time for the world's fourth-largest economy. She is the fourth PM in just five years, after her predecessors' terms were cut short by plunging ratings and scandals.

Although she defeated four men to win the LDP race in early October, her path to the top job appeared to be blocked when the LDP's long-time coalition partner, the Komeito party, withdrew support.

But a last-minute deal with another opposition party - the right-leaning Japan Innovation Party (JIP) - saved her. She and the LDP will face voters next in 2028.

Meanwhile, Takaichi faces tricky relationships abroad. South Korea is wary because of her right-wing politics, and she is seen as hawkish regarding the increasingly powerful China. A critical meeting with US President Donald Trump is coming up, presenting both challenges and opportunities in their bilateral relationship.

At the age of 64, Takaichi is well-experienced in Japanese politics. Known for conservative views, including her opposition to same-sex marriage, she has raised skepticism among some young women about her significance as the first female prime minister.

Though she has promised expanded services for women's health and greater recognition for household support workers, concerns linger about her ability to drive substantial change in a traditionally patriarchal political environment.

Takaichi's prime mission will be to regain public trust in a party battered by scandals and poor performance in elections. With rising prices affecting daily life, urgent economic reforms will be crucial to her platform.