Lawmakers in Japan elected hard-line conservative Sanae Takaichi as prime minister Tuesday, making her the first woman in modern times to lead the key U.S. ally.

Japan's Nikkei share gauge extended its record-breaking rally on Tuesday as fiscal dove Sanae Takaichi cleared a parliamentary vote to become the nation's next prime minister.

Takaichi received 237 votes, topping the majority of the 465-seat chamber, according to a lower house staff.