** Japanese Markets Slide on Election Uncertainty** **Executive Summary** Japanese financial markets experienced a broad sell-off following Prime Minister Sanae Takaichi’s announcement of a snap election. The surprise move has destabilized investor confidence regarding the nation's fiscal outlook, resulting in sharp declines across sovereign debt, equities, and currency markets. **Key Market Movements** * **Fixed Income:** Japanese Government Bonds (JGBs) plunged, driving yields to record highs as fiscal health concerns mounted. * **Equities:** Tokyo stock indices retreated amidst the political uncertainty. * **Currency:** The Japanese yen depreciated in tandem with the broader asset sell-off.