Aerial view of oil refinery on land near sea

Takaichi-Trump Summit Yields Trade and Defense Framework as Oil Crisis Reshapes Japan’s Economic Calculus

Prime Minister Sanae Takaichi’s meeting with President Trump at the White House on Wednesday produced a framework for expanded bilateral trade and deepened defense cooperation, though the full details of any trade agreement remain subject to further negotiation. The summit, which marked Takaichi’s first official visit to Washington since securing her historic supermajority in February,…

Read More
Singapore downtown office buildings with tree

Takaichi’s LDP Wins Historic Supermajority, Giving Japan’s First Female PM a Free Hand on Fiscal and Defense Policy

Prime Minister Sanae Takaichi’s Liberal Democratic Party won 316 of 465 seats in Sunday’s general election, securing a two-thirds supermajority in the lower house of parliament for the first time since the party’s founding in 1955. Combined with the 36 seats won by coalition partner Nippon Ishin no Kai, the ruling bloc controls 352 seats,…

Read More
Samsung office building with city in background

Nikkei Surges 3.9% to Record as Takaichi’s Landslide Victory Triggers the Biggest One-Day Gain in Months

Japanese equities exploded higher on Monday as markets digested the scale of Prime Minister Takaichi’s election victory. The Nikkei 225 jumped past 57,000 for the first time in history before paring gains to close 3.9% higher at 56,363.94. The TOPIX posted a record high at 3,783.94, up 2.3%. The LDP’s 316 seats, the most for…

Read More
japan office buildings with sky in back

Japan’s Budget Process Will Be the First Regulatory Test of the Takaichi Supermajority

Sunday’s election will determine not only the composition of Japan’s lower house but also the regulatory framework through which Prime Minister Takaichi’s fiscal agenda is implemented. The record budget proposed for fiscal year 2026, which includes expanded defense spending, infrastructure investment, and the proposed food consumption tax suspension, was introduced to parliament before the dissolution…

Read More
kiosk in downtown Japan at night

Japan’s Takaichi Moves to Dissolve Parliament, Betting Strong Approval Ratings Can Deliver an Election Mandate

Japanese Prime Minister Sanae Takaichi announced on Monday her intention to dissolve the lower house of parliament on January 23, setting in motion a snap general election scheduled for February 8. The decision, made public at a press conference in Tokyo, places Takaichi’s political future and the governing Liberal Democratic Party’s fiscal agenda squarely before…

Read More
Three screens monitoring stocks in front of office window

Takaichi’s Snap Election Could Remove the Final Regulatory Barriers to Japanese Defense Exports

Prime Minister Takaichi’s announcement of a February 8 snap election carries regulatory implications that extend beyond fiscal policy and constitutional revision. The LDP’s coalition agreement with the Japan Innovation Party includes a commitment to abolish the “five categories” restriction on defense equipment exports, a regulatory framework that has governed Japan’s arms trade since the Three…

Read More