Japan PM to resign to avoid party split, media reports
The Japanese media, Japanese Prime Minister Shigeru Ishiba, who resigned to prevent a division within the ruling party, turned the world’s fourth largest economy into fresh political uncertainty.
He did not comment immediately when he contacted the Prime Minister’s spokesman Reuters, but the government said Ishiba would hold a press conference later on Sunday.
Since he came to power in September 2024, Ishiba’s coalition has lost their majority in elections in both houses of Parliament in the midst of voter anger on increasing living costs.
From the Liberal Democratic Party, he refused to take responsibility for the loss of upper house in July and take responsibility.
The concern about political uncertainty led to a sale in Yen and Japanese government bonds last week, and the 30 -year bond return reached a record level on Wednesday.
When the LDP planned a vote on Monday, an extraordinary leadership selection, the speculation of Ishiba’s fate increased.
While policy paralysis can add pain for an economy hit by US tariffs, the markets focuses on replacing Ishiba’s replacement of Japan’s interest rate hike with a more loose financial and monetary policy, such as Sanae Takaichi, criticizing the Bank of Japan.
Ishiba defeated Takaichi narrowly in LDP leadership escape.
If Ishiba resigned, its last leading action would be to finalize the details of a trade agreement with the United States, which Japan’s US President Donald Trump promised to invest $ 550 billion ($ A840 billion) for Japan’s lower tariffs in Japan’s key automobile industry.
