Nippon Ishin party leader says Takaichi is to call snap election at start of Diet session

The leader of Japan's Nippon Ishin party, Yoshimura, has confirmed that Takaichi intends to dissolve the lower house and call a snap election. This strategic move is aimed at reinforcing support and increasing the ruling coalition's seats while her approval ratings remain high. More details are expected to be released on January 19, 2024. The next ordinary Diet session is scheduled for January 23, 2024. The potential election dates are being speculated as February 8 or February 15. This political maneuver is significant as it marks the first time the lower house has been dissolved at the beginning of a calendar year. However, opposition lawmakers are likely to launch pointed questions about her policies once the Diet convenes. Furthermore, ongoing tensions between Japan and China may provide additional ammunition for critiques of her leadership. Thus, the associated political uncertainty could impact market sentiments, necessitating prudent trading strategies.