Japanese PM's coalition loses majority in upper house election
The loss is another blow to Mr Ishiba's coalition, making it a minority in both houses following its October defeat in the lower house election, and worsening Japan's political instability.
It was the first time the LDP had lost a majority in both houses of parliament since the party's foundation in 1955.
Despite the loss, Mr Ishiba expressed determination to stay on to tackle challenges such as US tariff threats, but he could face calls from within his party to step down or find another coalition partner.
'I will fulfil my responsibility as head of the number one party and work for the country,' he said.
Mr Ishiba had set the bar low, wanting a simple majority of 125 seats, which meant his LDP and its Buddhist-backed junior coalition partner Komeito needed to win 50 to add to the 75 seats they already had.
Exit poll results released seconds after the ballots closed on Sunday night mostly showed a major setback for Mr Ishiba's coalition.
The LDP alone won 39 seats, better than most exit poll projections of 32, and still the number one party in the parliament, known as the Diet.
'It's a tough situation. I take it humbly and sincerely,' Mr Ishiba told a live interview with NHK.
He said the poor showing was because his government's measures to combat price increases had yet to reach many people.
The poor performance in the election will not immediately trigger a change of government because the upper house lacks the power to file a no-confidence motion against a leader, but it will certainly deepen uncertainty over his fate and Japan's political stability.
Mr Ishiba could face calls from within the LDP party to step down or find another coalition partner.
Soaring prices, lagging incomes and burdensome social security payments are the top issues for frustrated, cash-strapped voters. Stricter measures targeting foreign residents and visitors also emerged as a key issue, with a surging right-wing populist party leading the campaign.
Sunday's vote comes after Mr Ishiba's coalition lost a majority in the October lower house election, stung by past corruption scandals, and his government has since been forced into making concessions to the opposition to get legislation through parliament.
It has been unable to quickly deliver effective measures to mitigate rising prices, including Japan's traditional staple of rice, and dwindling wages.
US president Donald Trump has added to the pressure, complaining about a lack of progress in trade negotiations and the lack of sales of US vehicles and American-grown rice to Japan despite a shortfall in domestic stocks of the grain.
A 25% tariff due to take effect on August 1 has been another blow for Mr Ishiba.
Mr Ishiba resisted any compromise before the election, but the prospect for a breakthrough after the election is just as unclear because the minority government would have difficulty forming a consensus with the opposition.
Frustrated voters were rapidly turning to emerging populist parties. But the eight main opposition groups were too fractured to forge a common platform as a united front and gain voter support as a viable alternative.
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