ICYMI: Japan's PM Takaichi is considering calling a snap election for mid-February

Speculation is building within Japan’s ruling Liberal Democratic Party that Prime Minister Takaichi Sanae could dissolve the Lower House at the start of the ordinary Diet session later this month, triggering a snap general election as early as February. Lawmakers believe this is crucial while cabinet approval ratings remain strong. The government's priorities include economic policy and inflation relief, which may suggest the election's possibility. The current fragile majority in the Lower House adds pressure on Takaichi to act swiftly. As the ruling coalition prepares for potential electoral logistics, market implications are significant. Analysts suggest that increased fiscal support could weigh negatively on Japanese government bonds and the yen due to rising public debt and debt-servicing costs amidst the Bank of Japan's gradual interest rate hikes. The yen has already weakened ahead of these developments, raising concerns about possible insider trading, as political maneuvering intensifies.