On February 7th, 2025, Japanese Prime Minister Isgar was founded in the White House in Washington, USA.
Kent Nishimura | Reuters
Japanese media reported on Sunday, casting the world’s fourth-largest economy into new political uncertainty, and Japanese media reported that Japanese Prime Minister Isbaiba will step down to avoid division within the ruling party.
A spokesman for the Prime Minister’s Office did not immediately comment when contacted by Reuters, but the government said Isba will hold a press conference at 6pm (0900 GMT).
Since he came to power last September, the Isba coalition has lost its majority in elections in both Houses of Congress amid voters’ rage over rising costs of living.
He rejected calls from within the Liberal Democrats and resigned to take responsibility for the losses in the Senate in July.
Concerns over political uncertainty led to the sale of bonds from the yen and Japanese government last week, with 30-year bond yields hitting record highs on Wednesday.
Speculation about Isba’s fate rose when the LDP scheduled a vote on whether or not to hold an extraordinary leadership election on Monday.
The paralysis of policy could add pain to the US tariff-hit economy, but the market focuses on the possibility that Isba will replace it with advocates of slow fiscal and monetary policy, such as Sanaeta Kaichi, who has criticized the Bank of Japan’s interest rate hike.
Isba has slightly defeated Tarkach in the leak of LDP leadership.
If Isba resigned, his final act as prime minister was to finalize details of his trade deal with the United States last week.
President Donald Trump on Japan’s major automotive sector.
