TOKYO,  Oct 6, (AP): Japan’s Nikkei stock index jumped nearly 5% on Monday and the yen weakened after its ruling party chose an ultra-conservative as its leader and likely first woman prime minister. Other Asian markets also were mostly higher. US futures climbed and oil gained about $1 a barrel. The Liberal Democrats elected Sanae Takaichi, an ally of the late Prime Minister Shinzo Abe, as their leader, likely ensuring she will carry on with his market-friendly policies.

Takaichi, 64, admires former British Prime Minister Margaret Thatcher and backed Abe’s ultra-conservative vision for the country. She is likely to become prime minister because the LDP has the most seats in the lower house, although not a majority. It chooses the prime minister, and opposition groups are splintered. Takaichi faces a host of challenges that have bedeviled her predecessors, BMI of Fitch Solutions said in a commentary.

That includes "boosting Japan’s economic competitiveness and strengthening the country’s technological and industrial base and adopting measures to mitigate the impact of Japan’s ageing and declining population amid a colossal public debt burden.” Still investors, especially non-Japanese ones, were pleased, said Neil Newman, head of strategy at Astris Advisory Japan.

"Obviously investors like what she has been saying and certainly today judging by the number of stocks that moved and which stocks moved, it seems like pretty much led by foreigners so far," Newman said. Defense-related shares got a big boost, given Takaichi's hawkish stance. Stock in Kawasaki Heavy Industries leaped 9.2% and Mitsubishi Heavy Industries soared 11.1%.

An unconfirmed report that US President Donald Trump might be considering ways to reduce the cost of his higher tariffs on auto parts and other materials for U.S. manufacturers helped automakers' share prices. Toyota Motor Corp.'s shares jumped 4.9% in Tokyo and Honda Motor Co. gained 4.1%. The Nikkei 225 index rose 4.8% to 47,944.76, while Hong Kong's Hang Seng index sank 0.6% to 26,991.51.