Japanese Prime Minister Sanae Takaichi announced plans Monday to dissolve the House of Representatives this Friday, setting the stage for a snap general election on February 8. The surprise move comes as opposition parties forge new alliances, with the Constitutional Democratic Party of Japan and Komeito confirming they will merge into a single coalition to challenge the ruling bloc.
Political analysts suggest the election could reshape Japan's policy direction amid ongoing economic recovery efforts following the 2025 recession. The prime minister's decision follows weeks of speculation about her administration's stability after controversial revisions to the country's stimulus package.
Market observers are closely watching how campaign promises might impact Japan's ¥1.2 trillion digital transformation initiative and ongoing labor reforms. With voting scheduled just three weeks after dissolution, candidates face a compressed timeline to address voter concerns about inflation and energy security.
