Japan’s prime minister called a Feb. 8 snap election in a bid to convert her soaring approval ratings into a firmer grip on power.
Sanae Takaichi, who took office just three months ago, is caught in a ballooning row with China over her comments about Taiwan, and a stronger parliamentary majority could bolster her negotiating position with Beijing.
Takaichi also wants to pursue more stimulus, a promise that has sent Japanese stocks and long-term government bond yields soaring.
But predictions of a fiscal spending boom may be overblown: One economist warned Takaichi’s plan to loosen fiscal policy is “moving in a dangerous trajectory,” and top party allies may rein in her spending ambitions, The Japan Times wrote.