Economy February 1, 2026

Asahi Poll Sees Takaichi’s Party Nearing Landslide, Raising Fiscal and Bond Market Questions

Survey indicates the ruling bloc could expand its lower house majority, potentially strengthening mandate for expansionary fiscal policy

By Priya Menon
Asahi Poll Sees Takaichi’s Party Nearing Landslide, Raising Fiscal and Bond Market Questions

A survey by the Asahi newspaper indicates Japanese Prime Minister Sanae Takaichi’s Liberal Democratic Party is poised to win far more seats than its current tally in next week’s lower house election. A decisive result would consolidate her control of the party and provide a mandate for expansionary fiscal measures, a prospect flagged as likely to intensify concerns about Japan’s public finances and to lift government bond yields.

Key Points

  • Asahi poll projects the LDP will comfortably exceed the 233-seat majority in the 465-seat lower house, rising from 198 seats - impacts political control and legislative agenda.
  • The ruling coalition with the Japan Innovation Party could reach about 300 seats - affects the government’s ability to pursue fiscal policy.
  • A strong result may give Prime Minister Takaichi a mandate for expansionary fiscal policy, which the poll links to concerns about public finances and potential upward pressure on government bond yields - impacts public finance and fixed-income markets.

Summary: A poll conducted by the Asahi newspaper shows Prime Minister Sanae Takaichi’s Liberal Democratic Party (LDP) is likely to secure a substantially larger share of seats in the lower house in next week’s election, potentially delivering what the survey describes as a landslide. According to the Asahi’s findings, the LDP would comfortably surpass the 233-seat threshold needed for a majority in the 465-seat lower chamber, increasing from its present 198 seats.

Election math and coalition: The Asahi poll projects that, when combined with its coalition partner the Japan Innovation Party, also known as Ishin, the ruling alliance could approach roughly 300 seats in total. Such a result would broaden the governing bloc’s margin in the lower house from a slim advantage to a more commanding position.

Political consequences: A strong performance on Sunday would be expected to cement Takaichi’s hold on her party and furnish her with a political mandate to pursue expansionary fiscal policy. The poll note links that potential policy direction to market and fiscal concerns, saying it could heighten scrutiny of Japan’s public finances and exert upward pressure on bond yields.

Opposition outlook: The Asahi’s survey finds the largest opposition group, the Centrist Reform Alliance, is struggling in the vote and may see its presence significantly reduced - possibly losing half of its current 167 seats.

Legislative balance: At present, the ruling coalition holds only a slender majority in the powerful lower house, while remaining in the minority in the upper house. The poll suggests the upcoming lower house result could change the balance in the lower chamber in the government’s favor, though it does not address the upper house configuration.

Market implications: The Asahi poll frames the likely outcome as more than a political reshuffle - it signals a mandate that could enable the government to adopt expansionary fiscal measures. Those measures are explicitly linked in the survey to increased concern about Japan’s finances and a prospect of higher government bond yields.

Conclusion: The Asahi newspaper’s poll portrays a scenario in which the LDP and its coalition partner considerably strengthen their lower house standing. The survey highlights both the immediate political consolidation that would follow and the attendant fiscal and bond-market considerations policymakers and investors would be watching.

Risks

  • Expansionary fiscal policy could heighten concerns about Japan’s public finances, creating uncertainty for sovereign credit conditions - affects government finances and bond markets.
  • Potential upward pressure on bond yields if markets price in greater fiscal expansion - affects fixed-income investors and borrowing costs for the government.
  • A significant weakening of the largest opposition, the Centrist Reform Alliance, could reduce parliamentary pushback on fiscal measures, increasing policy concentration and uncertainty for sectors sensitive to government spending decisions - affects fiscal policy oversight and market confidence.

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