Japanese Prime Minister Shigeru Ishiba will resign to prevent a split in his ruling Liberal Democratic Party (LDP), local media reported Sunday, throwing the world’s fourth-largest economy into renewed political uncertainty.
The Prime Minister’s Office did not immediately respond to requests for comment, but officials confirmed Ishiba will address the nation at a 6 p.m. (0900 GMT) press conference.
Ishiba has faced mounting pressure since taking office in September last year, as his coalition lost control of both houses of parliament amid public anger over rising living costs. He had previously rejected calls to quit following the LDP’s defeat in July’s upper house elections.
Market concerns over Japan’s political outlook drove the yen lower and pushed the yield on 30-year government bonds to a record high last week. The LDP had been set to vote Monday on whether to hold an emergency leadership contest, fueling speculation about Ishiba’s departure.
Attention now turns to possible successors, including Sanae Takaichi, a fiscal dove who has criticized the Bank of Japan’s rate hikes. Takaichi narrowly lost to Ishiba in the party’s last leadership runoff.
If confirmed, Ishiba’s final act as leader will have been securing a $550 billion investment pledge in a trade deal with the United States in exchange for reduced U.S. tariffs on Japanese autos, a key industry targeted by President Donald Trump.
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