Overview
- Sources say Takaichi could dissolve the House of Representatives when the ordinary Diet session opens on Jan. 23.
- Media polls showing cabinet approval near 70% are fueling internal LDP preparations for a swift election.
- The LDP–Japan Innovation Party coalition holds a razor-thin lower-house majority that could be lost with a single seat.
- Opposition leader Yoshihiko Noda warns a snap contest would complicate passage of the fiscal 2026 budget before April.
- The yen weakened as investors cited election uncertainty and tensions with China tied to Takaichi’s tougher line on Taiwan.