Ishiba Resigns After Election Defeat
Japanese Prime Minister Shigeru Ishiba announced his resignation on Sunday, September 7, 2025, following a series of election defeats that have shaken the dominance of the Liberal Democratic Party (LDP). This decision sets off an imminent LDP leadership election, with the winner almost certain to be confirmed as prime minister through a parliamentary vote.
Ishiba's resignation was triggered by internal party pressure following his historic defeat in July and public discontent over rising living costs. He is also said to be waiting for the completion of a trade deal with the US before leaving office to prevent internal divisions within the LDP.
The succession process is underway within the LDP. Several names have emerged as candidates, including Sanae Takaichi and Shinjiro Koizumi. The winner of the party contest will be submitted to the Diet (parliament) for approval as the next prime minister.
Markets responded quickly: the yen weakened while Japanese stocks rose, with analysts predicting that political uncertainty could delay the Bank of Japan's interest rate hikes in the near term. Volatility in long-term bonds has also increased amid speculation of a more expansionary fiscal policy from Ishiba's successor. (ayu)
Source: Newsmaker.id
