Tokyo, 8 February 2026 – Sanae Takaichi is set for a decisive election victory that could cement her position as Japan’s most powerful leader in years, according to exit polls, signalling a major shift in the country’s political and economic landscape.
Public broadcaster NHK’s exit poll indicated that Takaichi’s ruling Liberal Democratic Party (LDP) may secure around 300 seats in Japan’s 465-seat lower house, potentially achieving a commanding majority and strengthening her grip on power. Early vote tallies showed the ruling coalition had already won at least 261 seats, significantly expanding its previously narrow majority.
Stronger Leadership Mandate and Policy Implications
A landslide victory would give Takaichi an unusually strong political mandate, allowing her administration to push forward economic reforms, fiscal measures and national security policies with fewer legislative constraints.
Market observers say such a decisive outcome could introduce both stability and volatility in financial markets. On one hand, a clear majority reduces political uncertainty; on the other, investors may react cautiously to any major policy shifts, particularly around fiscal spending, monetary coordination and defence expansion.
Takaichi’s strengthened political position may also allow Japan to accelerate structural reforms aimed at boosting economic growth, addressing demographic challenges and enhancing global competitiveness.
Economic and Market Significance
Japan’s political stability is closely tied to financial markets, particularly the yen, government bond yields and equity performance. A strong mandate could support:
- Fiscal stimulus to support economic growth
- Continued coordination with the Bank of Japan on monetary policy
- Structural reforms to improve productivity and labour participation
- Enhanced defence spending amid regional geopolitical tensions
At the same time, investors will closely monitor how Takaichi balances fiscal expansion with Japan’s already high public debt levels.
Regional and Global Implications
As Asia’s second-largest economy and a major global financial hub, Japan’s political direction has ripple effects across regional markets, including ASEAN economies such as Malaysia.
A stable and assertive Japanese government could strengthen trade partnerships, boost regional investment flows and enhance economic cooperation in sectors such as technology, infrastructure and supply chains.
For global investors, Takaichi’s expected victory reinforces the importance of political stability in shaping capital flows, market confidence and long-term economic strategy in Asia.
