Japanese Prime Minister Shigeru Ishiba announced his resignation on September 7, a move that followed his ruling coalition’s dramatic loss of majority in both houses of parliament. The setback has fueled concerns of political instability in the world’s third-largest economy.
The ruling Liberal Democratic Party (LDP), long seen as Japan’s dominant political force, will now begin preparations for a leadership election to select Ishiba’s successor. Analysts say the new leadership choice will be critical, as Japan faces pressing challenges — from sluggish economic recovery and rising public debt to geopolitical tensions in East Asia.
Financial markets reacted swiftly to the news. The yen weakened, with traders offloading Japanese assets, while long-term government bond yields surged to record highs amid fears of policy uncertainty. Investors are bracing for possible shifts in fiscal and monetary policy, particularly as the Bank of Japan attempts to manage inflation and its ultra-loose monetary stance.
For Ishiba, once considered a reformist within the LDP, the resignation marks an abrupt end to his tenure. Political observers note that his inability to maintain coalition unity and voter confidence sealed his fate.
The coming weeks will be crucial, with the LDP leadership race expected to determine Japan’s future policy trajectory — and restore confidence at home and abroad.
Image Source : https://en.wikipedia.org/wiki/Shigeru_Ishiba
