Trump Endorses Sanae Takaichi Ahead of Japan Elections
Analysis based on 18 articles · First reported Feb 05, 2026 · Last updated Feb 06, 2026
Markets are reacting to the potential for a super-majority for Sanae Takaichi's coalition in Japan, with concerns over the nation's colossal debt due to her proposed stimulus package and tax cuts. This has led to record-high yields on Japanese government bonds and a fluctuating yen, indicating investor apprehension about fiscal profligacy.
Japanese Prime Minister Sanae Takaichi received a full endorsement from former US President Donald Trump ahead of snap elections in Japan. Polls suggest her Japan===List of Liberal Democratic parties and its coalition partner, the Japan===Japan Innovation Party, are poised for a super-majority. Takaichi's policies, including a $135 billion stimulus package and tax cuts, have raised concerns about Japan's national debt, causing Japanese government bond yields to hit record highs and the yen to seesaw. She has also sparked tensions with China by suggesting Japan would intervene militarily if China attempted to take Taiwan by force. The United States and Japan have been working on trade deals and national security collaborations, with the US previously lowering tariffs on Japanese goods.
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