THE BIG PRINT IS ON IN JAPAN AS PM TAKAICHI WINS SNAP ELECTION
Japan’s conservative Prime Minister Sanae Takaichi has scored a landslide victory after calling a high-stakes snap election, according to exit polls.
Takaichi, who took office in October after winning leadership of the ruling Liberal Democratic Party, had vowed to step down if her coalition lost its majority. Instead, she is projected to secure between 274 and 326 seats out of 465, easily preserving a strong majority.
The surprise election caught both the opposition and much of the electorate off guard, but the gamble appears to have paid off.
In November 2025, Takaichi’s cabinet approved a record 21.3 trillion yen ($135B) stimulus package, the largest since the pandemic, aimed at boosting consumption and supporting households.
Since her rise, the so-called “Takaichi trade” has pushed domestic equities to record highs while triggering sharp selloffs in Japanese government bonds and the yen.
A committed supporter of Shinzo Abe’s Abenomics, Takaichi has pledged aggressive fiscal policy funded largely through bond issuance.
Markets now face a key question: will her electoral momentum fuel even larger stimulus, or give her the political cover to proceed more cautiously, as investors remain uneasy over Japan’s massive debt load and recent spikes across the JGB yield curve.
