Tokyo’s stock market surged Tuesday morning, with the Nikkei index climbing more than three percent as investors speculated that Prime Minister Sanae Takaichi might call a snap election to leverage her strong approval ratings. The Nikkei rose 3.37 percent, or 1,751.20 points, reaching 53,691.09 in early trading. Analysts said the index also benefited from catching up after a Japanese national holiday and following gains in U.S. markets overnight.
Takaichi, Japan’s first female prime minister, assumed office in October, and her cabinet enjoys approval ratings near 70 percent. Despite this popularity, her ruling coalition holds only a slim majority in the lower house of parliament, limiting its ability to advance her ambitious policy initiatives.
Market observers suggested that an early election could reinforce investor confidence. “If a lower house election is confirmed, we can anticipate a renewed buying trend,” said brokerage firm Monex, adding that a stronger parliamentary foundation would bolster the stability of Takaichi’s administration.
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According to reports in the Yomiuri and Mainichi newspapers, citing unnamed government sources, Takaichi is considering dissolving the lower house at the start of the parliamentary session on January 23. If she proceeds, an election would likely be scheduled for early to mid-February, offering the prime minister an opportunity to solidify her political mandate.