
Japan election: Exit polls suggest ruling party set to lose majority
NHK projected it "may be difficult for the ruling coalition to maintain their majority". Half of the seats in the upper chamber were being voted on in Sunday's election, with members elected for six-year terms. If the coalition takes home less than 46 seats, it would mark its worst performance since it was formed in 1999.Ishiba's centre-right party has governed Japan almost continuously since 1955, albeit with frequent changes of leader.The expected result underscores voters' frustration with Ishiba, who has struggled to inspire confidence as Japan struggles against economic headwinds, a cost-of-living crisis and trade negotiations with the United States.Many are also unhappy about inflation - particularly the price of rice - and a string of political scandals that have beleaguered the LDP in recent years.The coalition's loss would critically undermine its influence over policymaking, opening it up to major compromises with opposition parties, and could prompt Ishiba to quit less than a year after he was elected.The last three LDP premiers who lost a majority in the upper house stepped down within two months, and analysts had predicted that a significant loss in this election would yield a similar outcome.This would open the field for a potential run at the leadership by other notable LDP members, including Sanae Takaichi, who finished second to Ishiba in last year's general election; Takayuki Kobayashi, a former economic security minister; and Shinjiro Koizumi, the son of former Prime Minister Junichiro Koizumi.In any case, a change of leadership within the ruling party would almost certainly unleash political drama and destabilise Japan's government at a pivotal moment in US-Japan trade negotiations.
Support for the ruling coalition appears to have been eroded by candidates from the small, right-leaning Sanseito party, which drew conservative votes with its "Japanese First", anti-immigration rhetoric.Sanseito first gained prominence on YouTube during the Covid-19 pandemic, spreading conspiracy theories about vaccinations and a cabal of global elites.The fringe party's nativist rhetoric widened its appeal ahead of Sunday's vote, as policies regarding foreign residents and immigration became a focal point of many parties' campaigns.Going off the NHK exit polls, it is on course to win seven seats. Famous for its isolationist culture and strict immigration policies, the island nation has experienced a record surge in both tourists and foreign residents in recent years.The influx has further driven up prices for Japanese people and fuelled a sentiment among some that foreigners are taking advantage of the country, aggravating discontent.Against that same backdrop, Ishiba last week launched a task force aimed at tackling "crimes or nuisance behaviours committed by some foreign nationals", including those relating to immigration, land acquisitions and unpaid social insurance.
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Daily Mail
25 minutes ago
- Daily Mail
Japan's Prime Minister vows not to quit despite 'harsh result' on polls
Japan's Prime Minister has vowed not to quit despite exit polls indicating that his ruling Liberal Democratic Party (LDP) has lost control of the upper house. Voters took to the polls Sunday for the tightly-contested election, which has taken place at a time of frustration at the coalition of the LD and its junior partner Komeito over rising prices and the threat of US tariffs. According to media projections after elections, Shigeru Ishiba's coalition was projected to have lost its majority in the upper house, a result that might push him to resign. Speaking after polls closed on Sunday, the prime minister, 68, said he 'solemnly' accepts the 'harsh result' but that his focus was on trade negotiations. 'It's a difficult situation, and we have to take it very humbly and seriously,' Ishiba told broadcaster NHK. 'We can't do anything until we see the final results, but we want to be very aware of our responsibility,' Ishiba added. Half of the seats in the upper chamber were being voted on in Sunday's election, with members elected for six-year terms. If the coalition takes home less than 46 seats, it would mark its worst performance since it was formed in 1999. The Liberal Democratic Party (LDP) has governed Japan almost continuously since 1955, but whether anyone wants to replace Ishiba is another matter. 'I wonder who else wants the job,' Masahisa Endo, politics professor at Waseda University, told AFP before the election result. Ishiba, a self-confessed defence 'geek', is the son of a regional governor and is from Japan's small Christian minority. Seen as a safe pair of hands, he won the party leadership in September, on his fifth try, to become the LDP's 10th separate prime minister since 2000, all of them men. Ishiba pledged to 'create a new Japan' and revitalise depressed rural regions, and to address the 'quiet emergency' of Japan's shrinking population. He immediately called lower house elections for October but that backfired spectacularly, with the LDP suffering its worst result in 15 years. That robbed the LDP and its coalition party Komeito of their majority, forcing them to bargain with opposition parties to pass legislation. Ishiba's policies on bringing down inflation and spurring growth have 'flip-flopped', Stefan Angrick at Moody's Analytics said last week. The government 'boxed itself in, promising only some belated and half-hearted financial support that will do little to improve the demand outlook,' Angrick said. The government's popularity ratings have plummeted, with voters angry about price rises, especially for rice that is twice as expensive as a year ago. Ishiba, the father of two daughters, also appointed only two women to his cabinet, down from five under predecessor Fumio Kishida. Ishiba's sometimes clumsy ways - ranging from the less-than-perfectly tidy arrangement of his tuxedo to his table manners - have also been rich fodder for social media memes. He drew ridicule after being snapped apparently napping in parliament and for failing to stand up to greet other world leaders at a gathering in South America. Worse was a video that emerged of Ishiba eating an onigiri rice ball - a popular snack - whole and munching on it without closing his mouth. 'He eats like a three-year-old,' wrote one user on social media platform X. A major challenge has been dealing with US President Donald Trump, who has imposed painful tariffs on Japanese cars, steel and aluminium. Further levies of 25 percent on other Japanese imports - up from 10 percent currently - will come into force on August 1 if there is no trade agreement. Ishiba secured an early invitation to the White House in February and has sent his tariffs envoy to Washington seven times, but there has been no deal yet. Then-premier Shinzo Abe - dubbed a 'Trump whisperer' - fared better during Trump's first term, managing to shield Japan from any tariffs. Abe, who was assassinated in 2022, gifted Trump a gold-coloured golf club and was a frequent guest of the US president. According to Trump, Abe even nominated him for the Nobel prize. 'There will never be another like him,' he said after Abe's death.

Leader Live
2 hours ago
- Leader Live
Syria's armed Bedouins say they have withdrawn from Druze-majority city
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Reuters
2 hours ago
- Reuters
Japan ruling party's election loss is in the price, investors say
SINGAPORE, July 21 (Reuters) - Japan's upper house election on Sunday dealt a big blow to the ruling coalition and sets markets up for possible policy paralysis and a bigger fiscal deficit, much of which is already priced in, analysts said. Exit polls after Sunday's election showed the ruling coalition led by Prime Minister Shigeru Ishiba is likely to lose control of the upper house, thus making it a minority in both chambers of the government. Japanese markets are closed on Monday for a holiday, so the yen may be where investors get their first inkling of any disruption from the election outcome. The Japanese currency has already weakened considerably this year on expectations of changes to taxes and a bigger fiscal deficit. The election result, while not entirely a shock to markets, also comes at a tricky time for a country trying to get a tariff deal with U.S. President Donald Trump before an Aug. 1 deadline. Japanese government bonds (JGBs) plunged last week, sending yields on 30-year debt to an all-time high, while the yen slid to multi-month lows against the U.S. dollar and the euro. "I will not chase the coalition loss trades, and I suspect participants will spend some time analyzing the implications of the loss, which could take time to materialize, and also refocus attention to the trade negotiations which is another major macro risk for Japan," said Rong Ren Goh, a portfolio manager in the fixed income team at Eastspring Investments. Investors expect it will be a while before it becomes clear whether the ruling coalition intends to continue as a minority government, or draw in a new partner. Among the most likely candidates is the Democratic Party for the People (DPP), which has urged the Bank of Japan to reverse course and again loosen monetary policy. Investors are bracing for the LDP to compromise heavily to accommodate opposition parties' desire for tax cuts. Ishiba's fate also remains an unknown, although he said on Sunday he intends to stay in his position. Within the LDP, a leading candidate to replace Ishiba, should he step down, is Abenomics proponent Sanae Takaichi, who has advocated for a resumption of monetary easing by the BOJ. All three leading opposition parties back some form of consumption tax cuts, with the populist, right-wing Sanseito proposing a phase-out of VAT altogether. Those cuts would have to be paid for with increased Japanese government bond issuance. With debt about 2-1/2 times GDP, Japan is already the world's most indebted major country. "Preliminary tallies indicate that the Liberal Democratic Party–Komeito coalition will retain office only as a minority government," Shoki Omori, chief desk strategist at Mizuho Securities in Japan, said in a note. Omori also does not expect the LDP to force a leadership change, particularly while trade talks with the U.S. government are ongoing. "Against that political backdrop, prospects for an aggressive fiscal stimulus are limited....A meaningful supplementary budget, if one emerges, would not be debated until the autumn Diet session at the earliest," he wrote. If Ishiba resigns, the political uncertainty could be a trigger for foreign investors to sell Japanese shares and the yen, analysts said. Barclays analysts estimate a five percentage point cut to Japan's sales tax, currently at 10%, would lead to a 15-20 basis point increase in the 30-year yield. Japanese government 30-year yields are up 80 basis points (bps) this year and the yield curve is at its steepest in years, with the spread between 10-year and 30-year bonds above 150 bps. The yen has had a volatile first half of 2025 in a range of 140-160 per dollar. It rallied hard after the Bank of Japan's rate rise in January stoked expectations for a faster pace of monetary tightening, but has dithered since late April on political uncertainty, fractious tariff negotiations with the Donald Trump administration and the BOJ's dovishness. Long speculative positions in the yen are however still very large, making it likely that the currency will fall rapidly if Japan calls for a snap election or fiscal policy is loosened. The Nikkei 225 benchmark (.N225), opens new tab, by contrast, is up more than 11% since April 2, when Trump unveiled his global tariffs.