Japan’s Prime Minister Shigeru Ishiba has decided to resign, a source close to the premier confirmed, following intense pressure from within his Liberal Democratic Party (LDP) after significant electoral losses.
Ishiba, who assumed office in October 2024, faced mounting calls to step down after his coalition lost majorities in both houses of parliament, driven by public frustration over rising living costs.
His decision comes ahead of a critical LDP vote on Monday to determine whether to hold an extraordinary leadership election, a move that could have deepened party divisions.
Since taking office, Ishiba’s LDP-led coalition suffered defeats in the lower house election in October 2024 and the upper house election in July 2025, failing to secure a majority in the 248-seat upper chamber.
These losses, fueled by voter discontent over economic challenges, weakened Ishiba’s position within the LDP, which has dominated Japanese politics for decades.
The prime minister’s resignation aims to prevent further fracturing of the party, with NHK reporting that Ishiba intends to step down to avoid a divisive leadership contest.
Ishiba’s tenure was marked by efforts to stabilize Japan’s economy, including finalizing a trade deal with the United States last week, securing $550 billion in investments for lower tariffs on Japan’s automotive sector.
However, political uncertainty has impacted markets, with a sell-off in the yen and government bonds last week, the 30-year bond yield reaching a record high.
Speculation now centers on potential successors like Sanae Takaichi, who advocates looser fiscal policies, and Shinjiro Koizumi, a prominent figure tasked with addressing rising prices.
Ishiba’s resignation paves the way for the LDP to schedule a leadership election, likely in early October, though the next leader may struggle to pass legislation without opposition support due to the coalition’s lack of majority.
Analysts suggest the new leader might call a snap election to gain a mandate, despite a Kyodo poll indicating 55% of respondents see no need for an early vote.
Ishiba is set to address the nation in a press conference at 6 p.m. on Sunday, marking the end of his brief and turbulent tenure as Japan’s prime minister.