Sanae Takaichi becomes Japan's first woman Prime Minister

Japan's Liberal Democratic Party President Sanae Takaichi was elected Prime Minister by Parliament on Tuesday, to become the country's first woman leader.

Takaichi avoided a runoff with a victory in a first round of voting in the Lower House, garnering 237 votes against Constitutional Democratic Party of Japan leader Yoshihiko Noda's 149, Kyodo reported.

The official Japanese news agency said that 64-year-old Takaichi won 237 of 465 votes cast in the lower house of Parliament to become the Japan PM.

Among the challenges that the new PM faces is a sluggish economy and uniting the ruling party which has been rocked by scandals and internal conflicts.

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On Monday, Takaichi, who has been looking for a new political partner, reached a formal agreement with Osaka Governor Hirofumi Yoshimura, who leads the JIP, also known as Nippon Ishin no Kai.

Takaichi, a protege of the late former PM Shinzo Abe, was on Tuesday morning already moving ahead with forming a Cabinet ahead of her formal election as prime minister. No lawmakers from the JIP -- which is also known as Nippon Ishin no Kai -- are expected to join the Cabinet.

As part of the agreement, both parties will work together on several key reforms, including reducing the number of lawmakers in Japan's parliament by 10 per cent and overhauling the social security system.

The JIP's long-standing proposal to make Osaka a "secondary capital" alongside Tokyo is also expected to be included in the joint agenda. JIP's parliamentary leader, Fumitake Fujita, said that the decision to form a coalition with the LDP had strong support within the party.

"There was not a single cautious, opposing, or critical opinion," Fujita told reporters after a party meeting on Sunday.

Takaichi has reportedly offered "several ministerial posts" to JIP members to strengthen the alliance. However, the party has shown reluctance to accept such positions. Former JIP leader Nobuyuki Baba told reporters that none of the party members at Sunday's meeting supported the idea of taking Cabinet posts in Takaichi's administration.