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Japan's Ishiba Resigns, Triggering Emergency LDP Leadership Race

He will stay on as prime minister until the party chooses a successor.

Overview

  • Ishiba stepped down on Sept. 7 after sustained internal pressure following election losses, canceling a Monday vote that would have advanced a no-confidence style leadership challenge.
  • Ishiba said he timed his move after a U.S.-Japan trade milestone, with President Trump signing an order to lower many tariffs to a 15% baseline as Japan commits about $550 billion in investment.
  • The LDP-Komeito coalition no longer holds majorities in either Diet chamber, with upper-house seats reduced to 122 of 248 after July’s vote.
  • Markets have shown strain over the uncertainty, with the yen weakening and long-dated Japanese government bond yields rising to record levels last week.
  • An emergency leadership election is being organized for early October, with potential contenders including Sanae Takaichi, Shinjiro Koizumi, Takayuki Kobayashi, Yoshimasa Hayashi, Katsunobu Kato and Toshimitsu Motegi.