Japanese Prime Minister Shigeru Ishiba has announced his resignation following a series of election defeats. At a press conference on Sunday (September 7), the 68-year-old leader said he would continue to serve until a successor is chosen, according to Reuters.
Ishiba confirmed that the ruling Liberal Democratic Party (LDP) will hold an emergency leadership election. During his one year in office, the coalition suffered major losses in both houses of parliament, with rising living costs fueling voter discontent.
“With the signing of a trade agreement with the United States, we have overcome a major obstacle,” Ishiba said. “Now it is time to hand over responsibility to the next generation.”
His resignation comes amid market turmoil triggered by political uncertainty. The yen and government bond markets plunged last week, with 30-year bond yields reaching their highest level on Wednesday. Speculation over Ishiba’s future grew after the LDP called for an emergency vote.
Among the frontrunners to replace him are former minister Sanae Takaichi, known for opposing expansionary monetary policy and interest rate hikes, and Agriculture Minister Shinjiro Koizumi, who has gained popularity for tackling rising food prices.
Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, said Ishiba’s resignation was “inevitable after repeated election defeats,” adding that Takaichi and Koizumi are leading candidates.
Currently, the LDP lacks a majority in either chamber of parliament, meaning its new president may not automatically become prime minister. Analysts suggest the incoming leadership could call snap elections.
Ishiba’s last major act in office was finalizing a trade deal with the United States, under which Japan pledged $550 billion in investments in exchange for tariff reductions agreed to by President Donald Trump.
