
Japan's crucial vote: Why Sunday's election could reshape country's future — all you need to know
The election comes at a time of rising public concern over inflation, trade tensions with the US, and immigration. It is the first major national vote since Ishiba took office last year. A poor result for the ruling Liberal Democratic Party (LDP) and its coalition partner, Komeito, could trigger calls for the prime minister to step down.
Here's what you need to know about the election:
Japan holds Upper House elections every three years to fill half the chamber's 248 seats. This year, 124 regular seats and one extra vacancy are being contested. Voting is open from 7am to 8pm local time. More than 104 million people are eligible to vote.
Each voter casts two votes one for a local candidate and another for a political party under proportional representation. Early voting was completed by nearly 10 million people before election day.
The ruling coalition currently holds 75 seats that are not up for re-election. To retain its majority in the Upper House, it needs to win at least 50 of the 125 seats now being contested.
The outcome could affect how Japan responds to major domestic and international issues — including trade talks with the US, food prices, and immigration.
A loss for the coalition would not immediately bring down the government, but it would weaken Ishiba's position. Analysts say it could also lead to a leadership challenge from within the LDP and slow the passage of laws, budgets, and trade deals.
'If the ruling coalition fails to secure a majority, there will be a move within the LDP to dump Ishiba,' said Yu Uchiyama, professor of political science at the University of Tokyo, speaking to The New York Times.
What are the key issues?
Inflation, which had been largely absent in Japan for years, has crossed 3%. The cost of rice, a daily staple, has doubled due to supply problems and government policies. Many voters are angry about food prices and low wages.
'It is essential for the government to seek cooperation from the opposition to bring in any meaningful economic reforms,' Uchiyama told The Times.
Trade talks with Washington have stalled. US President Donald Trump has warned of a 25% tariff on Japanese exports starting 1 August unless Tokyo opens up its markets, especially for rice and American-made cars.
Japan's government fears this could hurt its economy further. Ishiba has resisted making concessions ahead of the vote.
If the ruling coalition keeps its majority, Ishiba will be able to continue with planned policies, including a record defence budget. If the LDP-Komeito alliance loses, the government could face gridlock and Ishiba may come under pressure to quit.
Even a narrow win could make Ishiba vulnerable. 'His leadership will remain weak, with little hope of improved support ratings,' said Uchiyama to The Times.
Japan has taken in one million foreign workers in recent years to tackle labour shortages. This has become a political issue, with parties like Sanseito calling for strict immigration limits and welfare curbs for foreigners.
Some opposition parties are also calling for tighter controls on foreign ownership of property.
Experts have warned of growing xenophobia. 'Foreigners are used as targets to vent discontent,' Uchiyama said, adding that the rhetoric is similar to what was seen under Trump in the US.
Despite rising support, opposition parties remain divided and are unlikely to form a united front. If the LDP loses its majority, it could spark talks of new coalition alignments.
Election results are expected late Sunday. If the ruling coalition performs poorly, a shake-up in Japanese politics may follow with Ishiba's future hanging in the balance.
(With inputs from agencies)
Mashkoora Khan is a sub-editor on the global desk. With a background as a multimedia journalist, her work has been featured in publications such as Al Jazeera, Down to Earth, and The Wire among other national and International outlets. ... Read More
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Economic Times
4 minutes ago
- Economic Times
Dollar indecisive as investors await more tariff clarity
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The dollar traded in a tight range on Tuesday after a brief fall at the start of the week, as investors watched out for any progress on trade talks ahead of an August 1 deadline for countries to strike deals with the U.S. or face steep tariffs The yen mostly held to gains from the previous session following results from a weekend upper house election in Japan that proved no worse than what had already been priced in, as focus now turns to how quickly Tokyo can strike a trade deal with Washington and Prime Minister Shigeru Ishiba's future at the Japanese currency was last a touch weaker at 147.65 in early Asia trade, after rising 1% on Monday in the wake of the election bruising defeat suffered by Ishiba and his ruling coalition also drew just a modest response in the broader Japanese market, which returned from a holiday in the previous session. [JP/] [.T]"The initial relief for the yen that the ruling coalition did not lose even more seats and that Prime Minister Ishiba plans to hang on to power is likely to prove short-lived," said MUFG senior currency analyst Lee Hardman."The pick-up in political uncertainty in Japan could complicate reaching a timely trade deal with the U.S., posing downside risks for Japan's economy and the yen."With just slightly over a week to go before an August 1 deadline on tariffs, U.S. Treasury Secretary Scott Bessent said on Monday that the administration is more concerned with the quality of trade agreements than their whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said President Donald Trump would make that over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs."Nothing that happens on August 1 is necessarily permanent, so long as the U.S. administration remains willing to talk, as was indicated in Trump's letters from two weeks ago," said Thierry Wizman, global FX and rates strategist at Macquarie dollar was last steady after slipping in the previous session due in part to the yen's rise and a dip in U.S. Treasury yields, leaving sterling trading 0.03% lower at $ euro fell 0.12% to $1.1684, with focus also on a rate decision by the European Central Bank later this week, where expectations are for policymakers to stand pat on European Union is exploring a broader set of possible counter measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU a basket of currencies, the dollar rose slightly to 97.94, after having fallen 0.6% on weighing on investors' minds has been worries about the Federal Reserve 's independence, given Trump has railed repeatedly against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates "Our base case remains that solid U.S. data and a tariff driven rebound in inflation will keep the FOMC on hold into 2026, and that the resulting shift in interest rate differentials will drive a continued rebound in the dollar in the next few months," said Jonas Goltermann, deputy chief markets economist at Capital Economics."But that view is clearly at the mercy of the White House's whims."Elsewhere, the Australian dollar eased 0.05% to $0.6522, while the New Zealand dollar fell 0.14% to $0.5960.


Indian Express
4 minutes ago
- Indian Express
July 22, 1985, Forty Years Ago: Plane Broke Apart
An analysis of the recordings of communications between the Air India jumbo and the air traffic control tower at Shannon airport in Ireland has indicated that the aircraft broke apart before crashing into the Atlantic. Paul Turner, an American expert investigating the crash, is quoted in a newspaper as saying that the tapes recorded at Shannon airport showed the plane's transmitter sent out radio impulses intermittently for five or six seconds after the digital flight data recorder and the cockpit voice recorder had stopped. That would indicate that the power supply to the recorders had been cut off suddenly. Police Firing Eleven persons were killed in Ahmedabad — nine of them in police firing in the Dariapur area — as violence continued to rock communally sensitive localities of the walled city for the fifth successive day. After a relatively peaceful night, trouble erupted when bombs were hurled and shots fired at a passing police vehicle. The police returned fire and nine persons were killed in the incident ,while four were admitted to hospitals with bullet injuries. Flash Floods Toll The death toll in flash floods and unprecedented rains in Punjab and Himachal Pradesh rose to 55 while major rivers in Bihar, fed by overnight heavy rains, are likely to worsen the flood situation in the state. In Uttar Pradesh, all major rivers were rising at different places but were still under the danger mark. BJP Bats For Bomb The Bharatiya Janata Party wants the government to develop 'our own'' nuclear bomb because it feels that the threat of a Pakistan N-bomb is 'real'. The party said the country could no longer afford to adopt a policy of drift and escapism in this 'serious matter'.


Time of India
19 minutes ago
- Time of India
Japan bonds fall on coalition's poll defeat as market reopens after holiday
Japanese government bonds fell in early trade on Tuesday, pushing up yields, as investors returning from a long holiday weekend digested the ruling coalition's recent election defeat. The yield on 10-year JGBs added 1.5 basis points (bps) to 1.535%, rising for the first time in four sessions. The benchmark 10-year JGB futures lost 0.09 yen to 138.26, threatening to end a three-session advance. Bonds Corner Powered By Japan bonds fall on coalition's poll defeat as market reopens after holiday Japanese government bonds experienced a decline on Tuesday, leading to increased yields. This occurred as investors reacted to the ruling coalition's recent election defeat. The yield on 10-year JGBs rose, marking the first increase in four sessions. Japan's ruling coalition lost control of the upper house in Sunday's election. Prime Minister Shigeru Ishiba faces pressure amid economic concerns. RBI accepts Rs 17,274 crore in bond switch auction, aims to manage fiscal pressure India's investment trusts to expand debt fundraising as yields drop, analysts say Corporate bonds in India: From institutional stronghold to broader participation India bonds advance as traders build positions for another rate cut Browse all Bonds News with Other cash bond tenors had yet to trade as of 0019 GMT. Yields move inversely to bond prices. Live Events Japan's ruling coalition lost control of the upper house in Sunday's election, a widely anticipated setback that further eroded the authority of Prime Minister Shigeru Ishiba , who lost his majority in the more powerful lower house in October. However, Ishiba has vowed to stay on, warning against creating a political vacuum as he faces an August 1 deadline for a trade deal with the United States . While the ballot does not directly decide the fate of Ishiba's administration, it heaps pressure on the embattled leader and could either imply policy paralysis or a bigger fiscal deficit , depending on the ruling party's next moves and the opposition's strength. Japan has the largest debt burden in the developed world at about 250% of its GDP. The 10-year yield pushed to the highest since October 2008 last Tuesday after opinion polls increasingly pointed to gains for opposition parties, which support debt-funded consumption tax cuts to alleviate the burden of the rising cost of living. The 30-year yield shot to an all-time high of 3.2%.