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Japan’s Prime Minister Shigeru Ishiba Resigns, Triggering Emergency LDP Leadership Race

He remains caretaker prime minister, with an emergency party vote proceeding in a fractured parliament that is unsettling investors.

Overview

  • Ishiba said he is stepping down as LDP president and instructed the party to hold an emergency leadership election, staying in office until a successor is chosen.
  • He indicated the LDP would cancel Monday’s planned internal motion on bringing forward a leadership race, which had been viewed as a de facto no-confidence test.
  • Successive defeats left the LDP-Komeito coalition without majorities in both chambers, forcing any new leader to seek cross-party support to pass legislation.
  • Ishiba timed his exit after a U.S.-Japan tariff breakthrough, citing President Donald Trump’s order lowering many levies, including autos, to about 15% and reported large Japanese investment pledges.
  • Potential contenders positioning include Sanae Takaichi, Shinjiro Koizumi, Yoshimasa Hayashi, Takayuki Kobayashi and Katsunobu Kato; candidates need 20 lawmaker endorsements and the winner must secure Diet backing as markets signal caution with yen and JGB weakness.