Sanae Takaichi prepares to cast her vote for the election of the new Prime Minister, during the general assembly of an extraordinary parliamentary session in Tokyo, Japan, 21 October 2025. Japan's ruling Liberal Democratic Party President Sanae Takaichi is set to become Japans first female prime minister. EPA/FRANCK ROBICHON 
By Leika Kihara
A snap election, which some analysts say could come as soon as January, would affect the administration's economic policies including deliberations over Japan's annual long-term fiscal blueprint, due around June next year.
Depending on when a vote might be called, it could also affect the timing and pace of interest rate hikes by the Bank of Japan, which typically avoids making big policy changes ahead of elections.
Jun Azumi, an executive of the Constitutional Democratic Party of Japan (CDPJ) - the country's largest opposition party - signaled on Tuesday his party will work with other parties to win back seats from the ruling coalition, the Yomiuri said.
"There's a good chance (the premier) could consider dissolving parliament at an early date," Yoshihiko Noda, head of CDPJ, was quoted as saying by domestic media, including Yomiuri, earlier this month.
Takaichi has repeatedly said she has no time to consider a snap election, and instead would focus on implementing policies to cushion the economic blow from the rising cost of living.
Yuichiro Tamaki, head of a smaller opposition Democratic Party for the People, is touring regional areas aiming to have at least one candidate run in all prefectures, the Yomiuri said. The paper did not mention the possible timing of a snap election.
A hardline nationalist and a fiscal dove, Takaichi has enjoyed strong public approval ratings since taking office on October 21. A poll by television broadcaster FNN showed on Monday her administration's approval rating stood at 75.2%.
Her 21.3-trillion-yen ($136 billion) stimulus package has driven up bond yields on concern over Japan's finances, and raised calls for clarity on how the administration will get the country's fiscal house in order.
Proponents of an early election hope Takaichi's popularity can help the ruling Liberal Democratic Party (LDP) win enough seats to reclaim a majority in the powerful lower house.
Takaichi was elected prime minister after the LDP agreed to form a coalition with the right-wing Japan Innovation Party, known as Ishin. Together the parties are short of a majority in the lower house, forcing the administration to heed opposition demands in passing a budget and legislation through parliament.
($1 = 156.3200 yen)
(Reporting by Leika Kihara; Editing by Sonali Paul)