Overview

• Shigeru Ishiba directed the Liberal Democratic Party to hold an emergency leadership election and will remain prime minister until the Diet chooses a successor.
• He canceled a planned party vote on advancing a leadership race and moved directly to an extraordinary contest under LDP rules.
• Ishiba said a U.S. tariff deal created the right moment to step down, with reports noting auto duties reduced toward 15% and large Japanese investment commitments.
• Political uncertainty has rattled markets, with the yen weakening and 30‑year Japanese government bond yields hitting a record high last week.
• A succession race is forming, with Shinjiro Koizumi and Sanae Takaichi prominent, Chief Cabinet Secretary Yoshimasa Hayashi discussed, and Toshimitsu Motegi declaring his candidacy; entrants must secure support from at least 20 lawmakers.