TOKYO: Tokyo shares jumped more than 3 per cent on Tuesday (Jan 13) morning on speculation that Prime Minister Sanae Takaichi will call a snap election to capitalise on strong poll numbers.
The Nikkei average rose 3.37 per cent or 1,751.20 points to 53,691.09 in early trade, as the index also played catch-up after a Japanese national holiday and United States shares advanced overnight.
Takaichi was appointed Japan’s first woman prime minister in October and her Cabinet is enjoying an approval rating of around 70 per cent.
But her ruling bloc only has a slim majority in the powerful lower house of parliament, hindering its ability to push through her ambitious policy agenda.
“If a lower house election is confirmed, we can anticipate a renewed buying trend,” according to brokerage house Monex.
“That’s because it is significant to have the foundation of the Takaichi administration solidified.”
She is considering dissolving the lower house at the start of a parliament session on Jan 23, the Yomiuri and Mainichi newspapers reported last week, citing unnamed government sources.
That would mean an election would be “highly likely to be held in early to mid-February”, the Yomiuri said.
Source: CNA
