• Once again, Sanae Takaichi delivers - this time with a decisive general election result that provides a much needed public endorsement of her growth strategy for Japan.
  • Just two weeks before the vote, markets were still pricing a 50/50 chance of the LDP (Liberal Democratic Party) securing a simple majority (>233 seats). Nevertheless, the eventual outcome - an absolute majority for the LDP alone (>310 seats) - is a landslide few anticipated.
  • This result gives the LDP firm control of the Lower House, consolidating Takaichi’s leadership and her “Sanaenomics” agenda while providing Japan with political stability in the medium term.

Read the full article to explore what would be the likely path of the country’s fiscal policy from here. 

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Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 12 February 2026. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
 

Date of first use: 12 February 2026

Doc ID: 5206544