Japanese Prime Minister Ishiba Promises To Continue To Serve Even Though The Coalition Loses In The High Council

Japanese Prime Minister Shigeru Ishiba/PHOTO Via Wikimedia Commons

Japanese Prime Minister Shigeru Ishiba promised to remain in office after the ruling coalition suffered a crushing defeat in the election of the upper house.

This condition prompted some people in his own party to doubt his leadership while the opposition considered the motion of not believing it.

The struggling prime minister said he would remain in office to oversee tariff negotiations with the United States and other pressing issues, such as rising consumer prices that burden the world's fourth-largest economy.

"I will remain in office and do everything in my power to map the path to solving these challenges," Ishiba said.

Ishiba intends to speak directly with US President Donald Trump as soon as possible and provide tangible results.

Analysts say his tenure may have been calculated, after he also lost control of the lower house of power in last year's election and lost votes on Sunday to opposition parties pledging to cut taxes and tighten immigration policies.

"Political situation has become fluid and could lead to a change of leadership or coalition reshuffle in the coming months," said Japan's chief economist at Oxford Economics, Norihiro Yamaguchi.

Investors fear that the Ishiba administration will now depend more on opposition parties who advocate for tax cuts and welfare spending that are unable to be borne by the country with the largest debt in the world.

The 68-year-old said he had no plans to expand his coalition, but would work closely with opposition parties to address voter concerns about inflation. However, Ishiba warned tax changes would not provide the direct assistance households need.

The market in Japan closed due to a holiday on Monday, although yen strengthened and the Nikkei futures index rose slightly, as election results appear to have been taken into account.

The Japanese government bond yields fell sharply ahead of the vote as polls showed the ruling coalition had called for fiscal restraints likely to lose a majority in the upper house.

Adding to economic anxiety, the lack of progress achieved by Ishiba in avoiding tariffs that will be imposed by its largest trading partner, the United States, on August 1 appears to have frustrated some voters.

"If the ruling party resolves one of these issues, the degree of approval will rise, but we feel nothing and it looks like the US will continue to pressure us," said Hideaki Matsuda, 60-year-old company manager.

Japan's chief tariff negotiator, Ryosei Akazawa, departed for trading negotiations in Washington on Monday morning, his eighth visit in three months.