Overview

• Komeito ended its 26-year partnership with the Liberal Democratic Party after talks failed to produce acceptable commitments on probing the slush‑fund scandal and tightening corporate donations.
• Komeito leader Tetsuo Saito said the party will not vote for Sanae Takaichi as prime minister without a coalition agreement, though it intends to cooperate on budgets and certain legislation.
• Without Komeito, the LDP is 37 seats short in the Lower House and 25 short in the Upper House, forcing Takaichi to seek support from opposition parties or navigate a minority path.
• Takaichi’s appointment of Koichi Hagiuda, a lawmaker sanctioned over unreported political funds, further strained negotiations as money-in-politics remained the core sticking point.
• Markets signaled higher political risk as the yen weakened and the Nikkei fell about 1%, and local reports indicated the parliamentary vote on a new premier may slip to the week of Oct. 20.