Japan's Nikkei Stock Average Rises as Investors Digest Election Results
As of 0023 GMT, the Nikkei was up 1.1% at 40,241.61. The broader Topix rose 0.78% to 2,856.49.
Japan's ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power even as he vowed to remain party leader.
The election was closely monitored as Ishiba's party also lost control of the more powerful lower house in elections last year and his Liberal Democratic Party was facing calls from opposition parties pledging to cut taxes.
'Investors bought stocks as the election outcome was in line with their expectations,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
'And they thought the election outcome would not have much impact on Japan's policy framework immediately, as Ishiba said he has no plans to expand his coalition.'
Shares of technology investor SoftBank Group jumped 4%, making them the largest contributor to the Nikkei's gains. Chip-related Advantest and Tokyo Electron rose 2.24% and 0.95%, respectively.
Heavy machinery maker Mitsubishi Heavy Industries jumped 5.4% to become the top percentage gainer in the Nikkei.
Medical equipment maker Olympus fell 2%, becoming the biggest drag in the Nikkei.
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The Diplomat
an hour ago
- The Diplomat
Why Ishiba Shigeru Is Not Resigning
A conventional understanding of Japanese politics holds that Ishiba Shigeru, whose party suffered a major setback in the July upper house election, must step down. Since becoming prime minister, he has lost three high-stakes elections in succession: the lower house election last October, the Tokyo assembly election in June, and now the upper house election. 'Three strikes and you're out' – that's how former LDP Secretary-General Motegi Toshimitsu put it. He was among the first senior party figures to openly call for Ishiba's resignation. Historically, all Liberal Democratic Party prime ministers who lost their majority in an upper house election – Uno Sousuke in 1989, Hashimoto Ryutaro in 1998, and Abe Shinzo in 2007 – resigned shortly thereafter. Major newspapers such as Yomiuri and Mainichi have reported that Ishiba's resignation is now a matter of time. However, based on Ishiba's public statements, there is no indication that he intends to resign. The day after the election results were confirmed, Ishiba announced his commitment to preventing political stagnation in the face of ongoing tariff negotiations with the United States and a worsening security environment – an announcement widely interpreted as a public declaration that he would remain in power. Since then, whenever questioned by the press or during Diet deliberations, he has categorically denied any intention to step down as prime minister, even accusing the media of misreporting his position. Even after facing a shouting crowd of fellow party members, Ishiba – at least for now – appears determined to soldier on. Technically speaking, the results of an upper house election do not determine who becomes prime minister in Japan. The prime minister is selected during a special session of the Diet, which is convened after a lower house election or following the resignation of the Cabinet. Some within the LDP say that the party rules stipulate a 'recall' clause, which allows them to redo a presidential election to select a new leader. But the rules in the book have never been tested, and there is a high bar for it to be enacted. Borrowing Ishiba's own words from 2007 about then-Prime Minister Abe: 'Unless he says he wants to quit, you can't make him quit unless you follow the proper procedures.' However, there are more substantial reasons that may have emboldened Ishiba to ignore his foremost critics – primarily conservative factions – who are pressuring him to resign. First, the public does not appear to be particularly concerned about whether Ishiba remains prime minister. Polls indicate that a majority of respondents believe Ishiba does not need to step down, and that number rises when the sample is limited to LDP supporters; according to NHK 69 percent of them prefer the Ishiba administration to continue. Based on these polling results, two hypotheses can be drawn. First, public frustration seems to be directed more toward the LDP as a party – whose image remains tarnished by the political funds scandal – than toward Ishiba as an individual. Second, the LDP's diehard conservative base has largely abandoned it, thereby increasing the relative influence of moderate factions who tend to support Ishiba's political style. This passive public support may have instilled in Ishiba a sense of responsibility to remain in office. Ironically, although conservative members of the LDP are calling for Ishiba's resignation, their efforts may be undermining their own cause. For nearly two decades, Japanese conservatives have been Ishiba's archrivals, and the distrust between them is mutual. Reports suggest that their attempt to force Ishiba from power may have only strengthened his resolve to stay, as he views them as the primary reason for the LDP's recent electoral losses – particularly given that a significant number of them have been implicated in the slush fund controversy. There are many roadblocks ahead for Ishiba as he fulfills his responsibility to govern. First, the loss of both houses in the Diet means he can no longer hide behind the cloak of responsibility – he will have to concede even more ground to the opposition. Some parties have openly refused to cooperate with Ishiba, though they imply they may reverse course if he fully embraces their demands. For example, Democratic Party for the People (DPFP) leader Tamaki Yuichiro stated that he will not 'cooperate with an Ishiba administration that does not fulfill its promise,' leaving room for collaboration once Ishiba begins accommodating Tamaki's party. However, with the growing influence of big-spending parties following the upper house election, Ishiba – whose fiscal hawkishness arguably cost him the election – will need to swallow some bitter pills if he hopes to pass legislation or allocate budgetary resources to his signature policy goals. The potential loss of his right-hand man may plunge Ishiba's government into jeopardy. Moriyama Hiroshi, the LDP secretary-general, is one of the most powerful figures within the party. In addition to being the de jure number two, he has leveraged personal ties cultivated during his tenure as chairperson of the Diet Affairs Committee to build a legislative alliance that enabled Ishiba to pass the annual budget and subsequent laws without a majority in the lower house – effectively making Moriyama the de facto prime minister, some have argued. Nevertheless, there are growing calls within the party for someone to bear responsibility for the election defeat. Moriyama, who spearheaded the campaign, is widely seen as the sacrificial lamb, and he appears to understand his fate. If Moriyama were to resign, it is highly doubtful that he could be replaced by an equally seasoned politician capable of assisting Ishiba in managing opposition forces in both houses. And even if a replacement were found, it would be risky for that individual to commit themselves to the Ishiba administration, which may be turning into a sinking ship. Nobody truly knows whether Ishiba means what he says – except Ishiba himself. He may indeed resign at any moment but appears to be maneuvering toward an honorable end game. As a devoted Christian, Ishiba may even interpret his current circumstances as a divine calling. Notably, the subtitle of his campaign book, published before he became prime minister, was 'My Policy, My Destiny.'
Japan Today
an hour ago
- Japan Today
China slams Japan lawmakers' Yasukuni visits
China on Friday slammed visits by Japanese lawmakers to Yasukuni Shrine and a ritual offering sent to it by Prime Minister Shigeru Ishiba, saying it reflects Tokyo's "erroneous" stance toward its history of aggression." The Chinese Embassy in Tokyo also said in a statement the reverence shown by the Japanese politicians indicates "the lingering ghost of Japanese militarism" and "further exacerbates the strong concerns and doubts of its Asian neighbors and the international community about Japan's direction." Japanese Finance Minister Katsunobu Kato and farm minister Shinjiro Koizumi paid tribute at the Shinto shrine in Tokyo to mark the 80th anniversary of Japan's surrender in World War II. Yasukuni, which honors convicted war criminals along with the war dead, is viewed as a symbol of Japan's past militarism by its Asian neighbors. Separately, top Chinese diplomat Wang Yi urged Japan to "face history squarely" on Friday, saying only by doing so "can we prevent ourselves from going astray again." At a press conference after a foreign ministers' meeting between China and Mekong nations in Yunnan Province, Wang asked Japan to "make the right choice," saying "some forces" in the neighboring country are still trying to "glorify and deny" war aggression as well as "distort and falsify" history. He also said such behavior is a "challenge to the U.N. Charter, the postwar international order, the conscience of mankind, and the people of all the victorious nations" in the war, according to the Chinese Foreign Ministry. As another nation that suffered under Japan's aggression, South Korea expressed "deep disappointment and regret" over ritual offerings to Yasukuni Shrine sent by "responsible leaders of Japan," namely Prime Minister Ishiba as head of the ruling Liberal Democratic Party, and others, as well as visits to the shrine by the two Cabinet ministers. Claiming the shrine "glorifies Japan's war of aggression," the South Korean Foreign Ministry in a statement said the Japanese leaders should demonstrate "their humble reflection and sincere remorse" for history, which it says serves a foundation for the development of future-oriented bilateral relations based on mutual trust. Meanwhile, Taiwan President Lai Ching-te said in a Facebook post that the former Axis powers in the war including Japan have become "free and democratic nations" and their postwar development demonstrates that freedom and democracy are "the common foundation for the international community to establish lasting peace and prosperity." Lai said, "When authoritarianism expands again, we must remember the lessons of World War II, remain steadfast in our resolve, and unite to prevent aggression and ensure the survival of freedom and democracy." His comments were made as the self-ruled island faces increased military pressure from mainland China, which claims the territory. © KYODO
Japan Today
an hour ago
- Japan Today
Israel in talks to resettle Gaza Palestinians in South Sudan, sources say
FILE PHOTO: Palestinians carry aid supplies they collected from trucks that entered Gaza through Israel, in Beit Lahia, in the northern Gaza Strip August 10, 2025. REUTERS/Dawoud Abu Alkas/File Photo South Sudan and Israel are discussing a deal to resettle Palestinians from war-torn Gaza in the troubled African nation, three sources told Reuters - a plan quickly dismissed as unacceptable by Palestinian leaders. The sources, who have knowledge of the matter but spoke on condition of anonymity, said no agreement had been reached but talks between South Sudan and Israel were ongoing. The plan, if carried further, would envisage people moving from an enclave shattered by almost two years of war with Israel to a nation in the heart of Africa riven by years of political and ethnically-driven violence. Israeli Prime Minister Benjamin Netanyahu's office and Israel's foreign ministry did not immediately respond to a request for comment on the information from the three sources. A spokesperson for the U.S. State Department said, "we do not speak to private diplomatic conversations," when asked about the plan and if the United States supported the idea. Netanyahu said this month he intends to extend military control in Gaza, and this week repeated suggestions that Palestinians should leave the territory voluntarily. Arab and world leaders have rejected the idea of moving Gaza's population to any country. Palestinians say that would be like another "Nakba" (catastrophe) when hundreds of thousands fled or were forced out during the Arab-Israeli war of 1948. The three sources said the prospect of resettling Palestinians in South Sudan was raised during meetings between Israeli officials and South Sudanese Foreign Minister Monday Semaya Kumba when he visited the country last month. Their account appeared to contradict South Sudan's foreign ministry which on Wednesday dismissed earlier reports on the plan as "baseless". The ministry was not immediately available to respond to the sources' assertions on Friday. News of the discussions was first reported by the Associated Press on Tuesday, citing six people with knowledge of the matter. Wasel Abu Youssef, a member of the Executive Committee of the Palestine Liberation Organization, said the Palestinian leadership and people "reject any plan or idea to displace any of our people to South Sudan or to any other place". His statement echoed a statement from the office of Palestinian President Mahmoud Abbas on Thursday. Hamas, which is fighting Israel in Gaza, did not immediately respond to requests for comment. Israeli Deputy Foreign Minister Sharren Haskel, who visited the South Sudanese capital Juba this week, told reporters that those discussions had not focussed on relocation. "This is not what the discussions were about," she said when asked if any such plan had been discussed. "The discussions were about foreign policy, about multilateral organizations, about the humanitarian crisis, the real humanitarian crisis happening in South Sudan, and about the war," she said, referring to her talks with Juba officials. Netanyahu, who met Kumba last month, has said Israel is in touch with a few countries to find a destination for Palestinians who want to leave Gaza. He has consistently declined to provide further details. © Thomson Reuters 2025.
