Japan’s economy on election day

In her first 110 days as prime minister, Ms. Takaichi has pushed through aggressive spending programs, including a record supplementary budget, accelerated plans to increase military spending and large state-led investments in artificial intelligence and semiconductor manufacturing.

A snap election on Sunday will serve in part as a referendum on that economic agenda. She signaled she would move forward with discussions regarding a suspension of certain consumption taxes — a step the Finance Ministry estimates could cost more than $30 billion annually — and that proposal sent benchmark government bond yields surging as investors questioned her ability to fund the strategy.

At the same time, Japan’s stock market, led by the Nikkei 225, has traded at record highs on a weakened yen and robust corporate earnings, even as households struggle with rising energy and fresh-food costs.

Japan