Japanese stock index fell slightly before the market opening, Prime Minister plans to hold early elections.

Major Japanese stock indexes fell in pre-market trading, following confirmation from former Prime Minister Koizumi Naoko of plans to hold a general election. The Nikkei 225 index fell by 0.55% in pre-market trading, while the TOPIX index futures dropped by 0.4%. With speculation about the election heating up, the benchmark Nikkei 225 index has set new closing highs over the past two trading days. The election could potentially take place as early as next month, and is expected to boost confidence in Koizumi Naoko, giving her party, the pro-market Liberal Democratic Party, greater power. Analysts at Panmure Liberum wrote before the election news was confirmed that the market expects a Liberal Democratic Party victory to bring further fiscal stimulus. As of Wednesday's close, the Nikkei 225 index has risen by 6.5% year-to-date.