Japanese Prime Minister Sanae Takaichi's party is likely to score a landslide victory in next week's lower house election, a survey by the Asahi newspaper showed, heightening the chance the country will continue to pursue big spending and tax cuts, Reuters reported. 

A strong showing in Sunday's election would solidify Takaichi's grip on her party and give a mandate for her expansionary fiscal policy, which could heighten concerns about Japan's finances and push bond yields higher.

"Implementing expansionary fiscal policy at a time the economy is at near full employment would heighten inflationary pressure" and weaken the yen, said Ryutaro Kono, chief Japan economist at BNP Paribas, according to Reuters.