TOKYO - Sanae Takaichi, a veteran Japanese lawmaker and fiscal dove, said on Thursday she would run in the ruling Liberal Democratic Party leadership race on October 4 to replace outgoing Prime Minister Shigeru Ishiba. Takaichi, who hopes to become Japan's first female prime minister, is seen as a front-runner in the race along with farm minister Shinjiro Koizumi. She said she would hold a press conference on Friday to explain her policy stance.

Prime Minister Ishiba announced his resignation this month to take responsibility for a series of bruising election losses after being in office for less than a year.

READ MORE: Japan PM Ishiba announces resignation

Reports since then that Takaichi could go for the job have roiled financial markets as the former internal affairs minister has been a vocal proponent of government stimulus and monetary easing.

The other candidates are Chief Cabinet Secretary Yoshimasa Hayashi, former foreign minister Toshimitsu Motegi and former economic security minister Takayuki Kobayashi.