Japan is set to hold a record-breaking short-term election. Prime Minister Fumio Kishida has scheduled the dissolution of the House of Representatives for January 24th, with voting on February 8th—only 16 days of campaigning in total, a first in Japanese history.

Why the rush? The core goal is actually just one: to consolidate the ruling position and, by the way, seek public approval to implement more aggressive fiscal stimulus policies. The most eye-catching promise is a temporary cut in the consumption tax on food. Essentially, this is a response to Japan's four consecutive years of inflation exceeding 2% and rising living costs. People's wallets are tightening, and the government is trying to win favor through tax cuts—an old but effective tactic.

However, there are many uncertainties. The opposition parties have already united to form the "Centrist Reform Alliance," creating a new rival coalition. The election cooperation between the Liberal Democratic Party and its new partner, Nippon Ishin (Japan Innovation Party), has not been tested in practice, and a number of smaller parties may split the vote, making the final outcome unpredictable. Currently, the market's expectation that the ruling coalition can hold onto its seats has slightly declined, indicating that investors are uncertain about the results of this election.