Which sectors could benefit first if the LDP wins?

AI and cybersecurity providers, data center operators, shipbuilding and maritime suppliers, and firms tied to perovskite solar cells and materials are well placed. Investors should seek companies with domestic facilities, clear compliance, and projects ready to break ground, since early tenders usually favor execution speed and transparent reporting.

How might markets react to a bigger fiscal push?

Equities exposed to capex and resilience themes could see stronger backlogs and guidance, while long-term yields may drift higher if issuance rises faster than demand. Clarity on fiscal guardrails and pacing can steady rates. Stock selection should focus on backlog quality, margin durability, and cash conversion from awarded projects.

What should investors watch around the Feb 8 vote?

Look for the mandate outcome, then early ministry notices that translate Sanae Takaichi economic policy into tenders and criteria. Track project lists, domestic content rules, and co-funding requirements. Monitor auction results, maturity mix, and any updates to fiscal anchors, which will shape equity sentiment and the yield curve.

Law and Government

February 5: Takaichi touts pro-growth fiscal push to lift Japan capex

ByHuzaifa Zahoor February 4, 2026February 4, 2026

Sanae Takaichi economic policy is back in focus after Feb 4 stump speeches in Kyoto and Saitama. She pledged a responsible pro-growth fiscal policy that pushes state-led investment into domestic capex, rare earths, energy and food security, cybersecurity, and national resilience. If the LDP wins a mandate on Feb 8, we expect faster public and private spending. That could reshape domestic investment Japan, influence sector earnings, and affect funding costs. Here is what investors in Japan should track now.