Sanae Takaichi Wins Supermajority as Trump Offers Support

Sanae Takaichi and the Liberal Democratic Party secured a massive victory in snap elections that grants her a two-thirds supermajority. The first female leader of Japan plans to use this mandate to increase military spending to 2 percent of GDP and launch a $135 billion stimulus package. Donald Trump endorsed the victory following his calls for allies to increase defense contributions during a period of high regional tension with China and North Korea.The Liberal Democratic Party is projected to control up to 366 seats in the Lower House alongside its partner the Japan Innovation Party. This outcome allows the conservative administration to bypass legislative hurdles to implement tax exemptions and stricter immigration policies through 2028. Investors expressed caution as bond yields hit record highs while the national debt continues to exceed double the size of the entire economy.Tensions with China increased after the victory because Sanae Takaichi previously suggested potential military intervention to defend Taiwan from forced reunification. North Korea launched at least two ballistic missiles during the election as record snowfall across northern Japan caused road closures and fatalities. USA Treasury Secretary Scott Bessent praised the result as vital for the strategic interests of the USA within the Asian region.