Takaichi Trade Roars Back in Japan as Snap Election Bets Grow

Japanese stocks rallied to fresh record highs while the yen and government bonds slumped on speculation that Prime Minister Sanae Takaichi may soon call a snap election.

With the prime minister’s popularity running high, a vote could bolster her authority, reigniting the so-called Takaichi trade that’s driven equity gains, bond losses and a weak yen since she came to power in October.