Overview
- Japan’s special Diet session opened on February 18, with Sanae Takaichi expected to be designated the 105th prime minister and to inaugurate her second cabinet with all ministers reappointed under the coalition with Nippon Ishin no Kai later the same night.
- Reporting indicates Takaichi intervened in parliamentary personnel selections, including the House speaker and Budget Committee chair posts, in a bid to solidify control over Diet operations.
- The government is prioritizing swift enactment of the fiscal 2026 budget and Takaichi has signaled a “responsible active fiscal policy,” with consideration of a time‑limited zero consumption tax on food previously floated in her agenda.
- Market sentiment has been choppy, with the Nikkei 225 closing down 239.92 points at 56,566.49 on February 17 after profit‑taking, following intraday volatility tied to a weaker‑than‑expected preliminary real GDP reading for October–December 2025 and a stronger yen.
- An Osaka prefectural audit disclosed that a 2020 sexual‑misconduct complaint involving a former high school teacher went uninvestigated until it was re‑reported in 2025, prompting the education board to promise an internal review.