Latest news with #ShigeruIshiba
Business Recorder
2 hours ago
- Business
- Business Recorder
Nikkei falls on corporate outlook concerns
TOKYO: Japan's Nikkei share average ended lower for a third straight session on Tuesday, as concerns over the domestic corporate outlook led investors to lock in profits from a recent rally. The Nikkei fell 0.79% to 40,674.55. The broader Topix declined 0.75% to 2,908.64. Japan is in the middle of its earnings season, and investors are cautious as a 15% tariff to be imposed on its exports to the United States could hit corporates, said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management. The tariff, part of the trade deal Japan struck with the US last week, is lower than the 25% that US President Donald Trump had earlier threatened to impose on the country. That, and expectations that Prime Minister Shigeru Ishiba would step down sent the Nikkei to its highest level in a year last week, Ueno said. 'The market hoped someone who promotes measures to stimulate the economy would replace him (Shigeru Ishiba),' he said. Ishiba vowed to remain in his post after his ruling coalition suffered a bruising defeat in upper house elections, prompting some in his own party to doubt his leadership as the opposition weighed a no-confidence motion. On Tuesday, chip-related stocks led the decline, with Lasertec falling 8.3% to become the worst performer on the Nikkei. Tokyo Electron fell 1.2% to become the biggest drag for the Nikkei. Advantest slipped 1%.
CNA
3 hours ago
- Politics
- CNA
Commentary: The far-right rises in Japan, but will it endure?
PERTH: Japan's Upper House election on Jul 20 was about more than Prime Minister Shigeru Ishiba's ruling coalition losing its majority, and whether he will now resign. It signalled a new phase in Japanese politics, with the 'Japanese First' Sanseito party emerging as a major victor. What was once a fringe sentiment expressed by a few conservatives has now taken centre stage. A defining feature of the election was the politicisation of foreigner-related issues, led by Sanseito's aggressive campaign to revise government policies that have allowed a 'silent invasion'. This hardline stance forced other parties to address the topic, making immigration policy a central issue. This marked a stark contrast to the Lower House election just months earlier, when the emphasis was on expanding foreign labour recruitment. Sanseito now has 14 seats in the 248-seat chamber, up from just one that it secured three years prior. It now holds enough seats to independently submit legislation in the Upper House, except for budget Bills. TAPPING INTO PUBLIC ANXIETIES Immigration has long been a sensitive issue in a rapidly ageing Japan facing chronic labour shortages, though the growing unease is also about overtourism. It comes at a time when the country reported both a record number of foreign residents (3.77 million as of the end of 2024) and a record number of tourists (21.51 million in the first half of 2025). Sanseito openly advocates for stopping welfare benefits to foreigners, restricting their hiring and enforcing stricter cultural conformity – even proposing a system to 'check the loyalty' of foreigners. These exclusionary narratives have gained traction by tapping into public anxieties, particularly those driven by economic hardship and social uncertainty. Such rhetoric has created a distorted sense of crisis, suggesting that Japan is being 'overrun' by foreigners and is somehow losing its national identity. In reality, Japan's foreign residents – roughly one in every 33 people – are vital contributors to society. They pay taxes, work in critical industries and help maintain essential public services. Blaming them for the country's challenges is not only factually wrong but also dangerously divisive. The party's rise has not come without controversy. Sanseito has been widely criticised for spreading misinformation. Fact-checking initiatives by media outlets intensified during the election, with many articles flagged as misinformation focused on claims relating foreigners to crime or preferential treatment. BEHIND THE SURGE So, who are the voters behind Sanseito's surge? The answer lies partly in changing voter demographics. While the ruling coalition suffered heavy losses, parties like Sanseito gained significant ground – especially among younger voters. Turnout increased most notably among people in their 20s to 40s, while elderly participation remained flat. This generational shift helped fuel Sanseito's rise. Its success can also be attributed to its savvy digital election strategy. Survey data suggests that those who favoured Sanseito were heavily influenced by video-sharing sites and social media platforms such as X (formerly Twitter) and often harboured deep distrust of traditional media and government institutions. This made them more inclined to shift political allegiance – an opening Sanseito was quick to exploit. The party dominated online search trends and amassed over 100 million views on YouTube. In this election, voter turnout reached levels high enough to impact the outcome, particularly among new participants mobilised through social media platforms. Estimates suggest this group may have accounted for 3 to 5 million votes, a large portion of which likely went to Sanseito. IS JAPAN HEADED DOWN FAR-RIGHT PATH? Against this backdrop, the national debate over immigration and identity is intensifying. Why has the issue of foreign residents become such a political flashpoint now? It is a pivotal moment for Japan to seriously reflect on the benefits and challenges of immigration – and to consider what kind of society it wants to be. Whether 'Japanese First' takes the same shape as 'America First' or whether Sanseito will follow in the footsteps of far-right parties in Europe like Alternative for Germany or Reform UK remains to be seen. Sanseito has tapped into a similar economic anxiety and public frustration to attract protest votes against the political establishment. Unlike European 'immigration nations', however, Japan has consistently rejected the notion of adopting a formal immigration policy. Successive prime ministers have emphasised that the acceptance of foreign workers is a labour policy – not an integration strategy. The foreign resident population also remains relatively low at about 3 per cent in Japan – compared to the European Union, where 6.4 per cent of residents were non-EU citizens as of January 2024. Japan is unlikely to face the deep polarisation seen in parts of Europe. Despite the LDP-Komeito coalition losing its Upper House majority, potential alliances with other conservative parties, such as the Democratic Party for the People and Nippon Ishin, suggest continued political stability. As in Europe, where populist parties have often moderated once in power, Sanseito's true direction will become clearer in parliamentary deliberations. Although sweeping policy changes are unlikely in the short term, symbolic shifts are already evident. Even before the latest election, the Democratic Party for the People and Nippon Ishin re-submitted a Bill to regulate land acquisitions by foreigners. The Ministry of Education recently excluded international students from a major research grant programme, responding to concerns that they made up 40 per cent of recipients. While these moves may not immediately impact daily life, they signal a growing exclusionary undercurrent that could subtly but significantly reshape Japan's foreigner-related policies. But one thing is clear: If exclusionary politics continue to gain ground, Japan risks eroding its longstanding identity as a peaceful and inclusive society. Building consensus across diverse views and backgrounds is the only viable path forward for Japan's future.
Bloomberg
6 hours ago
- Business
- Bloomberg
How the US Became the Apex Predator on Trade
For a region often hailed as the future of the global economy, it's been an unedifying experience. One by one, Asian leaders swallowed trade accords with the US that are slightly better than envisaged months ago, but more punitive than when they bet on access to the American market as a development strategy decades ago. The glory days of supply chains must seem like a prehistoric time to the countries that lined up to concede to White House demands for levies. Certainly a throw-back to an earlier, less prosperous, age: The overall level of US tariffs is now the highest since 1930s, according to Bloomberg Economics. Japanese Prime Minister Shigeru Ishiba was once adamant he would never accept duties, especially on autos, but concluded he could live with a 15% penalty. The European Union's top official, Ursula von der Leyen, on Sunday said the 15% rate the bloc settled on with President Donald Trump was the best she could manage.
Business Standard
11 hours ago
- Business
- Business Standard
Japanese markets ends lower for a third straight session
Japanese markets ended lower for a third straight session on concerns over political instability and the corporate outlook. The Nikkei average fell 0.79 percent to 40,674.55 as Prime Minister Shigeru Ishiba faced renewed calls to resign over last week's historic election loss. The broader Topix index settled 0.75 percent lower at 2,908.64. Chip-related stocks paced the declines, with Lasertec plunging more than 8 percent. Advantest and Tokyo Electron both fell over 1 percent. Nitto Denko lost 3.1 percent after the industrial materials maker reported a decline in quarterly profits.
Japan Times
16 hours ago
- Politics
- Japan Times
Why Ishiba refuses to quit even amid intense pressure for him to go
Prime Minister Shigeru Ishiba faces intense pressure within the Liberal Democratic Party to take responsibility for three election defeats by resigning. But he remains at bat following his third strike as the head of the LDP — the party's July 20 Upper House election loss. Ishiba's first strike came after becoming LDP president in September last year, when he led the party to a Lower House election a month later in which it lost its majority. The second strike came when the LDP was dealt a huge blow in the Tokyo Metropolitan Assembly election in June, during which it lost nine seats and was relegated to becoming the second-largest party in the assembly, behind Tokyo Gov. Yuriko Koike's Tomin First no Kai (Tokyoites First). In a meeting with party executives and angry LDP lawmakers on Monday, Ishiba resisted calls for him to resign, saying he would stay on as party president and prime minister in order to prevent a political vacuum from forming. 'It's important that public opinion and our party's views are aligned,' Ishiba said, adding that an appropriate decision on his future would be made with these and other factors in mind. Recent media polls suggest that the public is not as anxious as many in the LDP to see Ishiba resign over the electoral losses, which past party presidents have often done. The LDP is also expected to complete its own evaluation of the Upper House results, and why it lost, by mid-August. Ishiba is likely to wait until the party's conclusions are official before formally deciding his future. Ishiba says that his insistence on remaining, at least for now, is also due to specific policy issues. On Tuesday, he told reporters that he wanted to make sure the 15% tariff deal with the U.S. is implemented. He said it was vital to examine the impact of the agreement on the roughly 4,300 domestic items covered by it. Pro-Ishiba demonstrators concerned about who might succeed him in the event that he steps down urge the prime minister to stay on during the rally on Friday. | AFP-JIJI Another reason Ishiba isn't bowing to pressure to resign is a busy August schedule. He'll likely attend events related to the 80th anniversary of the end of World War II, such as memorial services for victims of atomic bombings in Hiroshima on Aug. 6 and Nagasaki on Aug. 9, as well as a ceremony commemorating Japan's war dead on Aug. 15. The Bon summer holidays follow soon after, and then Ishiba will welcome African leaders to the Tokyo International Conference on African Development that takes place from Aug. 20 to Aug. 22. Once August ends, any push for a leadership change becomes tricky as the political world prepares for the opening of the autumn session of parliament. The timeline is sure to be on the minds of LDP members seeking to oust Ishiba as quickly as possible. These include Sanae Takaichi, a former economic security minister and a conservative, and Toshimitsu Motegi, a veteran leader and a former party secretary-general. Both are trying to boost their standings within the party and among the public by criticizing Ishiba, who is in no hurry to let either of his rivals take over. While many LDP members agree Ishiba needs to go, the party — still reeling from the three election losses — has not rallied around a single rival candidate due to its own internal divisions. To win an LDP presidential election, a candidate needs to win a majority of votes from party parliamentarians and local chapters in the first round, or in a runoff between the top two first-round finishers. Yet even if an Ishiba rival manages to rally enough supporters to win the LDP presidency, the prime minister job is not guaranteed due to the party's lack of any parliamentary majority. Anyone replacing Ishiba would have to secure votes from at least one of the main opposition parties to become prime minister. For that to happen, LDP executives and opposition parties would first need to hammer out a deal right after a presidential election takes place. That could prove difficult to do quickly before the start of the autumn session of parliament, and would risk internal dissent within the LDP as well as create political problems for an opposition party leader who must convince members to vote for an LDP candidate to become prime minister rather than one of their own. Many want to see Ishiba strike out, but replacing him may not guarantee a more stable LDP or a more stable political situation. Staff writer Gabriele Ninivaggi contributed to this report.
