Tokyo, July 21 (Reuters) – The Japanese prime minister vowed to remain in his post on Monday after the ruling coalition was hit by the Upper House election.
The struggling prime minister told a news conference that he would continue to serve to oversee other pressing issues, including tariff talks with the US and rising consumer prices, which is burdening the world’s fourth-largest economy.
“I will take office and do everything with my own strength to portray the path to solving these challenges,” Isba said, adding that he will speak directly with President Donald Trump as soon as possible, bringing concrete results.
Analysts say his days lost stronger control of the House in last year’s elections, and on Sunday he cut his vote to opposition parties pledged to cut taxes and strengthen immigration policies.
“The political situation will become fluid and could lead to changes in leadership and restructuring of the coalition in the coming months,” said Yamaguchi, the lead Japanese economist at Oxford Economics.
Investors fear that Isba’s regime will be seen more in opposition defending tax cuts and welfare spending, which could make it difficult for the world’s most beneficial countries.
The 68-year-old leader said he had no plans to expand his coalition, but would work with the opposition to address voter concerns about inflation. However, he warned that tax changes would not provide the immediate assistance needed for families.
The Japanese market was closed due to Monday’s holiday, but Yen JPY=EBS has been strengthened and Nikkei Futures NKC1 has risen slightly.
The Japanese government bond yields sold more rapidly than votes as polls showed that the ruling coalition, which had sought financial restraints, were likely to lose a majority in the Senate.
In addition to economic unrest, the lack of progress in tariff avoidance tariffs scheduled to be imposed by its biggest trading partner, the US, on August 1, appears to be craving some voters.
“If the ruling party solved even one of these issues, IT (the approval rate) would have risen, but we didn’t feel anything and the US would continue to push us,” Hideaki Matsuda, a 60-year-old company manager, said outside Tokyo’s bustling Shinjuku station on Monday morning.
Japanese tariff negotiator Ryosie Akazawa left for trade talks in Washington on Monday morning, making his eighth visit in three months.
The far right profit
The liberal Democrats (LDP) in Isba, which has ruled Japan for much of its postwar history, have returned 47 seats by Komeito, a partner in the coalition.
Yoshihikonoda, the leader of the leading opposition Constitutional Democrats (CDPJ), said on Sunday that he was considering submitting a non-confident vote in the Isba administration after showing no voter confidence.
CDPJ returned 22 seats in the poll, finishing second.
Some senior LDP lawmakers quietly expressed doubts about whether Isba should stay, local media reports Monday.
Among them was former prime minister Sato, the leader of a powerful faction within the ruling party, who said he “cannot accept” Isba’s stay, Japanese television Asahi reported. According to the Sankei newspaper, senior party members including ASOs met on Sunday evening to discuss whether Isba should resign.
“It’s no surprise that there are various opinions within the party,” Isba said when asked about his party members who are seeking his resignation.
The far-right Sansate Party recorded the best night’s profits, adding 14 seats to the previously selected ones.
By spreading conspiracy theories about vaccinations and the global elite’s Cabal, launched on YouTube during the pandemic, the party discovered a wider appeal with its “Japan’s first” campaign and warnings about “silent invasions” by foreigners.
If we drag the former rhetoric into the mainstream, its success could mark the arrival of populist politics in Japan.
Former supermarket manager and English teacher, Sanseito leader Sohei Kamiya has previously pointed out Germany’s AFD and reform Britain as blueprints of potential future success.
(Reporting by John Geddie, Tim Kelly, Kevin Buckland, Rikako Maruyama, Hiromi Tanoue, Edited by Saad Sayeed)
