Prime Minister Shigeru Ishiba’s ruling coalition lost its majority in the upper house elections on Sunday, intensifying pressure on the embattled leader who also lost the lower house last year. The Liberal Democratic Party (LDP) and its partner Komeito secured only 47 of the 50 seats needed for a majority in the 248-seat chamber.
Despite the setback, Ishiba insisted he would remain in office, citing critical ongoing tariff negotiations with the U.S. ahead of an August 1 deadline. “We must not jeopardize these talks. I will stay to serve Japan’s national interests,” he said.
The election reflected voter frustration over rising living costs, particularly food prices, and the government’s opposition to tax cuts. Opposition parties gained momentum by pledging tax relief and increased welfare spending. The main opposition Constitutional Democratic Party won 22 seats, and its leader signaled a possible no-confidence motion against Ishiba.
Adding to the political turmoil, the far-right Sanseito party emerged as a growing force, expanding its presence to 15 seats. Known for its populist, anti-immigration rhetoric and pandemic-era conspiracy theories, Sanseito’s rise highlights a growing appetite for nationalist politics in Japan.
Market reaction was cautious. The yen firmed slightly as investors braced for possible policy gridlock, but broader uncertainty looms. Some LDP factions, including influential former Prime Minister Taro Aso, reportedly questioned Ishiba’s leadership. Analysts warn that Ishiba’s political fragility and Japan’s record debt burden may complicate fiscal policy and hurt investor confidence.