Japanese Prime Minister Sanae Takaichi's coalition has swept to a historic election win, paving the way for promised tax cuts that have spooked financial markets, and military spending aimed at countering China.
Ms 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, Ms 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.
"This election involved major policy shifts - particularly a major shift in economic and fiscal policy, as well as strengthening security policy," Ms Takaichi said in a television interview as the results rolled in.
"These are policies that have drawn a great deal of opposition ... If we have received the public's support, then we truly must tackle these issues with all our strength," she added.
US President Donald Trump congratulated Ms Takaichi on the result, wishing her "great success in passing your conservative, peace through strength agenda" in a social media post.
"Sanae's bold and wise decision to call for an election paid off big time," said Mr Trump, who will host Ms Takaichi at the White House next month.
Ms Takaichi called the rare winter snap election to capitalise on her buoyant personal approval ratings since she was elevated to lead the long-ruling LDP late last year.
Voters have been drawn to her straight-talking, hardworking image, but her nationalistic leanings and emphasis on security have strained ties with Japan's powerful neighbour China, while her promises of tax cuts have rattled financial markets.
Residents trudged through snow to cast their ballots with record snowfall in some parts requiring some polling stations to close early.
It was only the third post-war election held in February, with elections typically called during milder months.
But Ms Takaichi's election promise to suspend an 8% sales tax on food to help households cope with rising prices has rattled investors concerned about how the nation with the heaviest debt burden among advanced economies will fund the plan.
Ms Takaichi said yesterday she would speed up consideration of the sales tax cut while focusing on fiscal sustainability.
"Her plans for the cut in the consumption tax leave open big question marks about funding and how she's going to go about making the arithmetic add up," said Chris Scicluna, head of research at Daiwa Capital Markets Europe in London.
The head of Japan's top business lobby Keidanren, Yoshinobu Tsutsui, welcomed Ms Takaichi's win as restoring political stability.
"Japan's economy is now at a critical juncture for achieving sustainable and strong growth," he said.
The LDP, which has ruled for almost all of Japan's post-war history, had lost control of both houses in elections over the past 15 months under Ms Takaichi's predecessor, Shigeru Ishiba.
She has managed to turn around the party's fortunes by striking a chord with younger voters.
She has even sparked a "sanakatsu" craze, roughly translated as "Sanae-mania".
Her handbag and the pink pen she scribbles notes with in parliament have been in high demand.
China is not a fan, however.
Weeks after taking office, Ms Takaichi touched off the biggest dispute with Beijing in over a decade by publicly outlining how Tokyo might respond to a Chinese attack on Taiwan, the democratic island claimed by China.
China responded with several counter measures, including urging its citizens not to travel to Japan.
Taiwan President Lai Ching-te was one of the first foreign leaders to congratulate Ms Takaichi, saying he hoped her victory would "bring a more prosperous and secure future for Japan and its partners in the region".
Ms Takaichi's strong mandate could accelerate her plans to bolster Japan's defences, further angering China, which has cast her as attempting to revive its militaristic past.
Japan's Defence Minister Shinjiro Koizumi told TV stations yesterday evening that he wanted to push ahead with policies to strengthen Japan's defence while pursuing dialogue with China.
"Beijing will not welcome Takaichi's victory," said David Boling, principal at the Asia Group, a firm that advises companies on geopolitical risk.
"China now faces the reality that she is firmly in place - and that its efforts to isolate her completely failed," he added.
