Share this @internewscast.com

Key Points
  • Shigeru Ishiba has resigned after election defeats, leaving Japan facing economic and political uncertainty.
  • LDP leadership race starts, with Takaichi and Koizumi emerging as frontrunners for the role.
  • Successor must navigate fragile coalition, market jitters, and rising regional security tensions.
Japanese Prime Minister Shigeru Ishiba resigned on Sunday, setting in motion a leadership contest that could reshape the country’s political and economic trajectory at a fragile moment for the world’s fourth-largest economy.
His departure follows a string of bruising electoral defeats for his Liberal Democratic Party (LDP) and its coalition partner, which lost its majorities in both houses of parliament under his brief tenure.
The 68-year-old leader said he must take responsibility for his party’s election defeats. His decision follows voter anger over rising living costs, despite his recent success in finalising a trade agreement with the United States.
That deal, worth US$550 billion ($840 billion) in Japanese investments in exchange for reduced tariffs, was seen as a key achievement.

“With Japan having signed the trade agreement and the president having endorsed the executive order, a significant barrier has been overcome,” Ishiba informed reporters. “I am eager to hand over the responsibilities to the next generation.”

Markets reacted nervously, with the yen and long-dated government bonds under pressure amid speculation that a successor might push looser fiscal and monetary policy.
Attention is turning to potential frontrunners: Sanae Takaichi, a party veteran who has criticised recent interest rate rises, and Shinjiro Koizumi, the youthful farm minister and son of a former prime minister.

Analysts say Koizumi is unlikely to shift policy dramatically, while Takaichi’s expansionary stance could unsettle investors.

How will Japan pick its next leader?

The process of choosing Ishiba’s replacement is intricate. First, the LDP will hold an internal leadership race. Candidates must secure 20 nominations from members to be eligible to campaign nationwide.

In the initial round, both politicians and regular members cast their votes; if no candidate achieves a majority, a run-off is conducted between the two leading candidates, where politicians have the greatest sway in the second round.

But unlike past contests, the winner of the LDP presidency is not automatically assured the premiership. Without a parliamentary majority, the party must rely on forming a coalition. The lower house usually prevails if the chambers disagree, but opposition parties could complicate the process.
Historical precedent shows unexpected outcomes can occur. In 1994, the LDP supported Socialist Tomiichi Murayama as prime minister in an effort to regain influence through a coalition.
Whoever emerges may call a snap general election to seek legitimacy. Yet a Kyodo poll published on Sunday found 55 per cent of respondents opposed holding one soon. Even so, the July upper house vote highlighted voter discontent, with the far-right Sanseitō party making significant gains and shifting once-fringe positions into the mainstream.

Business leaders are urging quick action. Yoshinobu Tsutsui, chair of Keidanren, Japan’s largest business lobby, said there was “no time to lose” in stabilising politics and addressing economic and security challenges.
Ordinary citizens share that urgency.
“With all the turmoil around tariffs right now, I hope the next prime minister will be someone who can properly manage the issues and handle diplomacy more effectively,” said Maki Utsuno, a chemistry researcher in Tokyo.
Ishiba, an outsider who only won leadership on his fifth attempt last year, exits having secured a critical trade deal but leaving behind political instability. His successor faces not only economic headwinds but also a volatile security environment, underscored by last week’s meeting of Chinese, Russian and North Korean leaders in Beijing.

Share this @internewscast.com
You May Also Like
Trump threatens retribution as US government teeters on brink of shutdown

Trump Warns of Consequences While US Government Faces Possible Shutdown

As a government shutdown looms mere hours away, Democrats and Republicans are…
Rescuers search for victims after a building under construction collapsed, at an Islamic boarding school in Sidoarjo, East Java, Indonesia, Tuesday, Sept. 30, 2025. (AP Photo/Trisnadi)

Rescue Teams Deliver Oxygen to Survivors of Indonesia’s Collapsed School Building

In a race against time, rescuers supplied oxygen and water to students…
Ruth O'Gorman said her client should never have been asked to make an assessment of his honesty. (Darren England/AAP PHOTOS)

Life Sentence Overturned for Man Convicted in Young Footballer’s Murder

A man who assessed himself as “10 out of 10” honest during…
US Secretary of Defence Pete Hegseth

“US Defense Secretary: Combat Troops Must Meet Top Male Standards”

US Defence Secretary Pete Hegseth called together hundreds of US military leaders…
Queensland Health in damage control over radiology reports bungle

Queensland Health Scrambles to Manage Radiology Report Errors

Queensland Health authorities are attempting to reach 9000 patients who underwent scans…
St Augustine's College in Brookvale, in northern Sydney.

Teacher at Catholic Boys School Accused of Student Sexual Misconduct

A female educator at a prestigious Catholic boys’ school has been dismissed…
Fans have turned on Keith Urban after it was revealed he has split from his wife of 19 years, Nicole Kidman. The New Zealand-born singer, 57, was inundated with comments on his Instagram, with a slew of admirers begging him to reunite with his 58-year-old actress wife. Recent posts have been utterly swamped with fans sharing their grief over the breakup.

Fans React to Keith Urban and Nicole Kidman’s Split

Fans have turned against Keith Urban following news of his separation from…

JK Rowling Criticizes Emma Watson for ‘Lack of Understanding’ in Trans Rights Debate

Harry Potter creator JK Rowling criticized Emma Watson for her thoughts on…

Australian Women’s Cricket Team Targets Historic 40-Year Milestone

Australia’s all-conquering generation of women’s cricketers have one last World Cup feat…
Emma Watson

“JK Rowling Criticizes Harry Potter Star in Harsh Response”

Harry Potter author JK Rowling has penned a long and scathing message…
Optus suffered a major data breach in 2022.

“Optus Brand in a Delicate, High-Risk Situation: A Chronology of Two Difficult Years”

Two years of persistent difficulties have resulted in Optus suffering a substantial…
Prime Minister Anthony Albanese, with  Lulu Global Director, Global Operations & Chief Sustainability Officer Mohamed Althaf MM (left) and Lulu Chairman M. A. Yusuff Ali (right) during a visit to Lulu Hypermarket, which imports Australian goods to the UAE,  at Mushrif Mall in Abu Dhabi, United Arab Emirates on September 29, 2025.

Prime Minister Invites International Retail Giant to Compete with Coles and Woolworths in Australia

Prime Minister Anthony Albanese has invited a United Arab Emirates retail chain…