Overview
- Leaders of the Liberal Democratic Party and Japan Innovation Party signed their coalition agreement Monday evening in Tokyo, according to Japanese media.
- The combined tally of 231 seats in the lower house positions Sanae Takaichi to win the prime ministerial vote but leaves the alliance below an outright majority.
- Parliament is set to vote Tuesday, and Takaichi would only need a majority of ballots cast in a runoff, easing her path to selection.
- The written deal includes proposals to cut about 10% of lower-house seats, abolish a provisional gasoline tax, and promote Osaka as a secondary capital, aligning with Takaichi’s pro‑spending, tax‑cut agenda.
- Tokyo shares rallied on coalition hopes, with the Nikkei jumping as investors welcomed clearer prospects for government formation.