The Tokyo stock market closed 1.5% higher and the yen slumped to its lowest value since mid-2024 on media reports that the election could take place as soon as February 8.
The Prime Minister also conveyed her intention to dissolve the chamber to Shunichi Suzuki, secretary-general of her ruling Liberal Democratic Party (LDP), he said.
Suzuki told reporters in Tokyo that the election would in part be about seeking a public mandate on the current LDP-JIP partnership, which materialised only recently after the ruling party’s former partner exited the coalition.
The junior Komeito party ended its 26-year relationship with the LDP last year, citing the LDP’s failure to tighten party funding rules following a damaging slush fund scandal.
It was also unnerved by Takaichi’s previous harsh rhetoric on China and her regular visits to a Tokyo shrine that honours Japan’s war dead, including war criminals.
Budget bill
If Takaichi dissolves the lower house on January 23, which is the start of a regular Parliament session, the most likely election date would be February 8, various media reported.
By keeping short the period between Parliament dissolution and a general election, Takaichi hopes to curb the election’s impact on parliamentary debate over the Budget Bill for the upcoming fiscal year, the Yomiuri newspaper said.
Takaichi’s Cabinet approved a record ¥122.3 trillion ($1.3t) budget for the fiscal year from April 2026, and she has vowed to get parliamentary approval as soon as possible to address inflation and shore up the world’s fourth-largest economy.
Takaichi became Japan’s fifth premier in as many years when she was elected, initially as the head of a minority government.
Her LDP and the JIP regained their lower-house majority in November after three lawmakers joined the LDP.
The ruling bloc remains a minority in the upper house.
Takaichi reportedly hopes a bigger majority will help her implement her agenda of more “proactive” fiscal spending, and may also help her break the deadlock in a spat with China.
Ties have deteriorated since Takaichi suggested in November that Japan could intervene militarily if China ever launched an attack on Taiwan, the self-ruled island it claims.
- Agence France-Presse