Japan's PM Ishiba says he will stay in office despite election loss
The coalition is now a minority in both houses of the Diet, or parliament, though the LDP is still the leading party.
Mr Ishiba said he takes the result seriously but that his priority is to avoid creating a political vacuum and to tackle impending challenges, including the August 1 deadline for a tariff deal with the US.
'While I painfully feel my serious responsibility over the election results, I believe I must also fulfil my responsibility I bear for the country and the people so as not to cause politics to stall or go adrift,' Mr Ishiba said.
'Challenges such as global situation and natural disaster won't wait for a better political situation.'
The prime minister said he hopes to reach a mutually beneficial deal and meet with US President Donald Trump.
Sunday's vote comes after Mr Ishiba's coalition lost a majority in the October lower house election, stung by past corruption scandals, and his unpopular government has since been forced into making concessions to the opposition to get legislation through parliament.
It has been unable to quickly deliver effective measures to mitigate rising prices, including Japan's traditional staple of rice, and dwindling wages.
Mr Trump has added to the pressure, complaining about a lack of progress in trade negotiations and the lack of sales of US cars and American-grown rice to Japan despite a shortfall in domestic stocks of the grain.
A 25% tariff due to take effect on August 1 has been another blow for Mr Ishiba.
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