Japan was plunged into political uncertainty on Sunday after snap elections saw the ruling coalition led by new Prime Minister Shigeru Ishiba lose its parliamentary majority for the first time in 15 years.
The main opposition party, the Constitutional Democratic Party of Japan (CDPJ), gained a significant increase by winning 148 seats, up from the previous 98.
It is a major blow for Ishiba, who now faces the difficult task of finding a third coalition partner to form a majority.
“We may get tough verdict from the public again in the Upper House election, so we have to take it seriously and we need to launch the political reform headquarters immediately,” he said.
The yen dropped to a three-month low against the U.S. dollar on Monday, declining by one percent to 153.88 per dollar in the Asia session, following LDP’s failure to secure a majority.
Ishiba called for snap elections after being elected earlier this month to replace Fumio Kishida, whose resignation was prompted by public dissatisfaction with the government’s handling of rising inflation and a scandal related to political fundraising.
The LDP has ruled Japan for nearly all of its post-war history, and the recent election result marked the party’s worst election performance since it briefly lost power in 2009 to the Democratic Party of Japan (DPJ), a precursor to the CDPJ.
The DPJ’s handling of the 2011 earthquake and tsunami, which severely impacted the Fukushima nuclear plant, led to the LDP winning the 2012 election under the leadership of the late Shinzo Abe. Abe, the longest-serving prime minister, was assassinated in 2022 after his tenure ended in 2020.
The Northern Territories are four islands off the coast of Hokkaido that were given to the Soviet Union—and inherited by Russia—after the end of the war.
Abe sought to promote joint economic activities in the islands with Russia, but Ishiba said he never thought such efforts would lead to Moscow returning them, a long-standing Japanese demand.
