Japan PM vows to stay on after bruising election defeat
TOKYO - Japanese premier Shigeru Ishiba vowed to stay on after his ruling coalition suffered a bruising defeat in upper house elections on Sunday as some of his own party discussed his future and the opposition weighed a no-confidence motion.
In a series of televised remarks as the results came in on Sunday evening, Ishiba told reporters he would remain as prime minister, citing a looming tariff deadline with the United States set to strain the world's fourth largest economy.
Ishiba is due to hold a press conference at 2 p.m. (0500 GMT) where he will formally announce those plans, broadcaster NHK reported.
Analysts say his days may be numbered, having also lost control of the more powerful lower house in elections last year and shedding votes on Sunday to opposition parties pledging to cut taxes and tighten immigration policies.
"The political situation has become fluid and could lead to a leadership change or the reshuffling of the coalition in coming months, but Prime Minister Shigeru Ishiba will likely stay to complete the tariff negotiations with the U.S. for now," said Oxford Economics' lead Japan economist Norihiro Yamaguchi.
Facing a voter backlash over rising consumer prices, investors fear his administration will now be more beholden to opposition parties advocating for tax cuts and welfare spending that the world's most indebted country can ill afford.
Markets in Japan were closed for a holiday on Monday, although the yen strengthened and Nikkei futures rose slightly, as the election results appeared to be priced in.
Top stories
Swipe. Select. Stay informed.
Singapore Risk of flash floods in parts of central and eastern Singapore: PUB
Singapore Trial of new dengue vaccine begins recruitment for child participants in Singapore
Singapore Witness stand not arena for humiliation in sex offence cases, judge reminds lawyers
Singapore Priority for singles, higher quota for second-timer families to kick in from HDB's July BTO exercise
Business Bigger, quieter, greener: High-volume low-speed fans see rising demand in warming Singapore
Business Singapore dollar faces downward pressure from US tariffs, expected policy shift
World Microsoft alerts businesses, governments to server software attack
Asia Japan PM Ishiba under siege after ruling coalition loses Upper House majority
Yields on Japanese government bonds sold off sharply ahead of the ballot as polls showed the ruling coalition - which had been calling for fiscal restraint - was likely to lose its majority in the upper house.
Adding to the economic anxiety, Ishiba's lack of progress in averting tariffs set to be imposed by its biggest trading partner, the United States, on August 1 appears to have frustrated some voters.
"Had the ruling party resolved even one of these issues, it (their approval rate) would have gone up, but we didn't feel anything and it seems like the U.S. would continue to push us around," Hideaki Matsuda, a 60-year-old company manager, said outside Tokyo's bustling Shinjuku station on Monday morning.
POPULIST POLITICS
Ishiba's Liberal Democratic Party (LDP), which has ruled Japan for most of its post-war history, and coalition partner Komeito returned 47 seats, short of the 50 seats it needed to ensure a majority in the 248-seat upper chamber in an election where half the seats were up for grabs.
The leader of the main opposition Constitutional Democratic Party (CDPJ), Yoshihiko Noda, said on Sunday he is considering submitting a vote of non-confidence in the Ishiba administration as the result showed it did not have voters' trust.
The CDPJ returned 22 seats in the ballot, finishing second.
Some senior LDP lawmakers were also quietly voicing doubts over whether Ishiba should stay, according to local media reports on Monday.
Among them was former prime minister Taro Aso, leader of a powerful faction within the ruling party, who said he "couldn't accept" Ishiba staying on, Japan's TV Asahi reported. Senior party members including Aso met on Sunday evening to discuss whether Ishiba should resign, Sankei newspaper reported.
The far-right Sanseito party clocked the biggest gains of the night, adding 14 seats to one elected previously.
Launched on YouTube during the pandemic by spreading conspiracy theories about vaccinations and a cabal of global elites, the party found wider appeal with its 'Japanese First' campaign and warnings about a "silent invasion" of foreigners.
Dragging once-fringe rhetoric into the mainstream, its success could mark the arrival of populist politics in Japan, which until now has failed to take root as it has in the United States and western Europe.
Sanseito's party leader Sohei Kamiya, a former supermarket manager and English teacher, has previously pointed to Germany's AfD and Reform UK as a possible blueprint for future success. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
3 hours ago
- Straits Times
Iran says it held ‘frank' nuclear talks with European powers
Find out what's new on ST website and app. A European delegation leaving the Iranian Consulate in Istanbul, following nuclear talks on July 25. ISTANBUL - Iranian diplomats said they held 'frank and detailed' nuclear talks on July 25 with counterparts from Germany, Britain and France, who have threatened to trigger sanctions if Tehran fails to agree a deal on uranium enrichment and cooperation with UN inspectors. The meeting in Istanbul was the first since Israel launched an attack on Iran in June targeting key nuclear and military sites, sparking a 12-day war and leading Tehran to pull away from working with the UN watchdog. The European diplomats were seen leaving the Iranian consulate shortly before 1100 GMT (7pm in Singapore) after spending several hours inside. Israel's offensive – which killed top commanders, nuclear scientists and hundreds of others and in which residential areas and military sites were struck – also derailed US-Iran nuclear talks that began in April. Since then, the European powers, known as the E3, have threatened to trigger a so-called 'snapback mechanism' under a moribund 2015 nuclear deal that would reinstate UN sanctions on Iran by the end of August. The sanctions trigger expires in October, and Tehran has warned of consequences should the E3 opt to activate it. Iran's Deputy Foreign Minister, Mr Kazem Gharibabadi, who attended the talks alongside senior Iranian diplomat Majid Mr Takht-Ravanchi, wrote on X that he had used the meeting to criticise the European stance on the 12-day conflict with Israel. Top stories Swipe. Select. Stay informed. Singapore SMRT to pay lower fine of $2.4m for EWL disruption; must invest at least $600k to boost reliability Singapore MRT service changes needed to modify 3 East-West Line stations on Changi Airport stretch: LTA Singapore S'pore could have nuclear energy 'within a few years', if it decides on it: UN nuclear watchdog chief Life 'Do you kill children?': Even before independence, S'pore has always loved its over-the-top campaigns Singapore Lung damage, poor brain development, addiction: What vaping does to the body Singapore Tipsy Collective sues former directors, HR head; alleges $14m lost from misconduct, poor decisions Singapore Fine for couple whose catering companies owed $432,000 in salaries to 103 employees Singapore Kopi, care and conversation: How this 20-year-old helps improve the well-being of the elderly He said the snapback mechanism had also been discussed, adding: 'It was agreed that consultations on this matter will continue.' Mr Takht-Ravanchi told state news agency IRNA the Iranian side had demanded 'punitive sanctions' be lifted 'as soon as possible'. Before the talks, a European source said the three countries were preparing to trigger the mechanism 'in the absence of a negotiated solution'. The source urged Iran to make 'clear gestures' on uranium enrichment and resuming cooperation with the UN nuclear watchdog. 'Common ground' Mr Gharibabadi warned earlier in the week that triggering sanctions – which would deepen Iran's international isolation and place further pressure on its already strained economy – would be 'completely illegal'. He accused European powers of 'halting their commitments' under the 2015 deal, which the United States unilaterally withdrew from in 2018 during President Donald Trump's first term. 'We have warned them of the risks, but we are still seeking common ground to manage the situation,' said Mr Gharibabadi. Iranian diplomats have previously warned that Tehran could withdraw from the global nuclear non-proliferation treaty if sanctions were reimposed. Israeli Foreign Minister Gideon Saar has urged European powers to trigger the mechanism. Israel's June 13 attack on Iran came two days before Tehran and Washington were scheduled to meet for a sixth round of nuclear negotiations. On June 22, the US joined Israel's offensive by striking Iranian nuclear facilities at Fordo, Isfahan, and Natanz. Before the war, the US and Iran were divided over uranium enrichment – with Tehran describing it as a 'non-negotiable' right, while Washington called it a 'red line'. The International Atomic Energy Agency (IAEA) says Iran is enriching uranium to 60 per cent purity – far above the 3.67 per cent cap under the 2015 deal and close to weapons-grade levels. Tehran has said it is open to discussing the rate and level of enrichment, but not the right to enrich uranium. A year after the US withdrew from the nuclear deal, Iran began rolling back its commitments, which had placed restrictions on its nuclear activities in exchange for sanctions relief. Israel and Western powers accuse Iran of pursuing nuclear weapons, a charge Tehran has repeatedly denied. 'New form' Iran insists it will not abandon its nuclear programme, with Foreign Minister Abbas Araghchi describing the position as 'unshakable'. Though he claimed enrichment had come to a halt because of 'serious and severe' damage to nuclear sites caused by US and Israeli strikes, the full extent of the damage sustained in the US bombing remains unclear. Mr Trump claimed at the time the sites had been 'completely destroyed', but US media reports based on Pentagon assessments cast doubt on the scale of destruction . Since the 12-day war, Iran has suspended cooperation with the IAEA, accusing it of bias and failing to condemn the attacks. Inspectors have since left the country but a technical team is expected to return in the coming weeks after Iran said future cooperation would take a 'new form'. Israel has warned it may resume strikes if Iran rebuilds facilities or moves toward weapons capability. Iran has pledged a 'harsh response' to any future attacks. AFP
CNA
10 hours ago
- CNA
Oil steady as investors weigh trade optimism against potential Venezuelan supply increase
LONDON :Oil prices were steady on Friday, as trade talk optimism supported the outlook for both the global economy and oil demand, balancing news of the potential for more oil supply from Venezuela. Brent crude futures were up 18 cents, or 0.26 per cent, at $69.36 a barrel at 1049 GMT. U.S. West Texas Intermediate crude futures were up 18 cents, or 0.27 per cent, at $66.21. For the week, Brent was up just 0.1 per cent from last Friday's close, while WTI was heading for a loss of around 1.7 per cent. Brent prices have been largely range-bound between $67 and $70 a barrel for the last month, since the sharp drop in prices in late June after de-escalation in the Iran-Israel conflict. Oil prices are "caught in largely a holding pattern brought about by inconclusive specific oil drivers", PVM analyst John Evans said. Oil, along with stock markets, gained support from the prospect of more deals between the United States and trading partners ahead of an August 1 deadline for new tariffs on goods from an array of countries. After the U.S. and Japan secured a trade deal this week, two European diplomats said the European Union was moving towards a deal involving a baseline U.S. tariff of 15 per cent on EU imports, plus possible exemptions. "Trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply," ING analysts wrote in a client note on Friday. The U.S. is preparing to allow partners of Venezuela's state-run PDVSA, starting with U.S. oil major Chevron, to operate with limitations in the sanctioned nation, sources said on Thursday. Venezuelan oil exports could consequently increase by a little more than 200,000 barrels per day, which would be welcome news for U.S. refiners, as it would ease tightness in the heavier crude market, ING analysts wrote. Prices were also supported this week by disruptions to Black Sea oil exports and Azeri BTC crude loading from the Turkish port of Ceyhan. "Delays in deliveries from the Russian terminal on the Black Sea and the Turkish port on the Mediterranean are likely to have contributed to the Brent oil price rising back towards $70. Now that exports are back to normal, support for prices is likely to ease," Commerzbank analyst Carsten Fritsch said.
Business Times
11 hours ago
- Business Times
Japan's trade win, bond yields and Singapore's big bet on the STI
Japan's new trade pact with the US has sent the Nikkei soaring. But is the euphoria justified? In this episode of Market Focus Weekly, a podcast from The Business Times hosted by Emily Liu, Endowus CIO Hugh Chung joins the show to unpack the headlines moving Asian markets this week from bond market jitters and central bank silence to a billion-dollar boost for Singapore's Straits Times Index (STI). And if you're wondering whether the de-dollarisation narrative holds water, or where retail investors are looking beyond the US, we've got you covered. Why listen? Because Japan just bagged a trade win but is the rally overcooked? Markets love momentum, but some parts of the Nikkei are already looking pricey. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Because bond yields are climbing quietly but steadily Japan's 30-year yield just breached 3 per cent. That's not nothing. Because Singapore's MAS is putting real money on the table A S$1.1 billion injection to lift market participation? It's a move worth watching. Because everyone's talking about de-dollarisation but should you care? The noise is loud, but the fundamentals may tell a different story. Market Focus Weekly is a markets podcast from The Business Times, hosted by Emily Liu. Catch past episodes on Spotify, Apple Podcasts or at Do you have a market mystery you want decoded? Drop us a note at btpodcasts@ --- Written and hosted by: Emily Liu (emilyliu@ With Hugh Chung, chief investment officer, Endowus Edited by: Chai Pei Chieh & Claressa Monteiro Produced by: Emily & Chai Pei Chieh A podcast by BT Podcasts, The Business Times, SPH Media --- Follow Market Focus Weekly podcasts every Friday: Channel: Amazon: Apple Podcasts: Spotify: YouTube Music: Website: Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party's products and services. Please consult professional advisors for independent advice. Discover more BT podcast series: BT Money Hacks at: BT Correspondents: BT Podcasts: BT Branded Podcasts: BT Lens On:
