Voting is underway in Japan’s interim election on Sunday, where Prime Minister Sanae Takaichi hopes to turn her early tenure’s momentum into a decisive win. Opinion polls suggest her ruling Liberal Democratic Party (LDP) and its coalition partners are on track to secure around 310 of the 465 lower house seats, well above the 233 needed for a majority. Such a result would mark the LDP’s strongest performance since 2017. Analysts note that a sweeping victory could strain relations with China and unsettle Japan’s financial markets.

Takaichi, who became LDP leader in October, has gained popularity among young voters despite her roots in the party’s conservative wing. She has taken a tough stance on immigration, emphasizing strict screening to prevent entry by potential terrorists or spies and ensuring foreign residents meet tax and insurance obligations. Economically, she announced a $135 billion stimulus package to ease inflation and pledged to suspend consumer taxes on food items.

Japan’s public debt remains more than twice the size of its economy, with bond yields at record highs and the yen experiencing sharp fluctuations.