Japan's House of Representatives Election Set to Influence Political Stability

The Japanese House of Representatives election is scheduled for February 8, according to a report by Jin10. This election is crucial as it will determine the ruling party and the Prime Minister. Prime Minister Takashi decided to dissolve the House and call for elections at a time when his approval ratings are relatively high, aiming to secure more seats and strengthen the ruling foundation. The main focus of this election is on how many seats the ruling coalition can secure, which will directly impact the election outcome and the future stability of the government. Current opinion polls by major Japanese media suggest that the Liberal Democratic Party may significantly increase its seats, with the possibility of securing a majority on its own. In this scenario, it is anticipated that Japanese assets might experience significant price movements, with a potential rise in Japanese stocks, an increase in Japanese bond yields, and a depreciation of the yen. However, due to the high uncertainty associated with political events, investors are advised to remain cautious of these uncertainties.