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Reuters

Japan’s ruling coalition lost its parliamentary majority in a drubbing at Sunday’s national election, raising uncertainty over the make-up of the next government and the outlook for the world’s fourth-largest economy.
Prime Minister Shigeru Ishiba’s Liberal Democratic Party (LDP), which has ruled Japan for almost all of its post-war history, and junior coalition partner Komeito took 215 seats in the lower house of parliament, public broadcaster NHK reported.
That was down from the 279 seats they held previously and marked the coalition’s worst election result since it briefly lost power in 2009.
“This election has been very tough for us,” a sombre-looking Ishiba told TV Tokyo.




Komeito’s Keiichi Ishii, who took over as that party’s new leader last month, lost in his district.
The biggest winner of the night, the main opposition Constitutional Democratic Party of Japan (CDPJ), had 148 seats, up from 98 previously, as voters punished Ishiba’s party over a funding scandal and inflation.
The outcome may force parties into fractious power-sharing deals to rule, potentially ushering in political instability as the country faces economic headwinds and a tense security situation in East Asia.
“This is not the end, but the beginning,” CDPJ leader Yoshihiko Noda told a press conference, adding that his party would work with other opposition parties to aim for a change of government.
Ishiba earlier in the night said he would wait until the final results before considering potential coalitions or other power-sharing deals.


The prime minister had called the snap poll immediately after being elected to head the party last month, hoping to win a public mandate for his premiership. His predecessor, Fumio Kishida, quit after his support fell because of anger over a cost of living crunch and the scandal involving unrecorded donations to lawmakers.
The election also took place nine days before voters in the United States – Japan’s closest ally – head to the polls in another unpredictable ballot.
The yen fell to a three-month low and Japanese stocks are expected to decline while longer-dated government bond yields are seen rising as investors react to the uncertainty.
“The voters’ judgment on the ruling bloc was harsher than expected,” said Saisuke Sakai, senior economist at Mizuho Research and Technologies.
“Uncertainty over the administration’s continuity has increased, and the stock market is likely to react tomorrow with a sell-off, especially among foreign investors.”

The LDP has held an outright majority since it returned to power in 2012 after a brief spell of opposition rule. It also lost power briefly in 1993, when a coalition of seven opposition parties formed a government that lasted less than a year.
Smaller parties, such as the Democratic Party for the People (DPP) or the Japan Innovation Party, could now prove key to forming a government.
The DPP won 28 seats and the Japan Innovation Party 38 seats, according to NHK. But both propose policies at odds with the LDP line.
DPP chief Yuichiro Tamaki has not ruled out some cooperation with the LDP-led coalition, but Innovation Party head Nobuyuki Baba has rejected the idea.
The DPP calls for halving Japan’s 10 per cent sales tax until real wages rise, a policy not endorsed by the LDP, while the Innovation Party has pledged tougher donation rules to clean up politics.
“The DPP is focused on ultimately making the country better and ensuring financial resources are allocated more appropriately, so that’s why I decided to vote for them,” Keisuke Yoshitomi, a 39-year-old office worker, said after casting his vote at a polling station in Tokyo.

Political wrangling could also be a headache for the Bank of Japan (BOJ) if Ishiba chooses a partner that favours maintaining near-zero interest rates when the central bank wants to gradually raise them.
The Innovation Party opposes further increases in interest rates, and the DPP leader has said the BOJ may have been hasty in raising rates, while the central bank wants to gradually wean the Japan off decades of massive monetary stimulus.
“With a more fluid political landscape, pushing through economic policies that include raising taxes, such as to fund defence spending, will become much harder,” said Masafumi Fujihara, associate professor of politics at Yamanashi University.
“Without a strong government, it would be more difficult for the BOJ to raise rates and keep the weak yen under control.”


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Japan

Japan’s ruling coalition loses majority, election outcome in balance

Japanese Prime Minister Shigeru Ishiba at the headquarters of his ruling Liberal Democratic Party in Tokyo, Japan, on Sunday. Photo: Kyodo 

People vote during the general election at a polling station in Tokyo on Sunday. Photo: EPA-EFE

Yoshihiko Noda, leader of Japan’s opposition Constitutional Democratic Party, at the party’s headquarters on Sunday. Photo: Kyodo News via AP

Japan’s ruling party projected to miss majority in election, in blow for new PM Ishiba

Officials of the election administration committee open ballot boxes to count the votes for Japan’s general election in Tokyo on Sunday. Photo: AFP

A man carrying his baby casts his ballot in the general election at a polling station in Tokyo. Photo: Reuters

Yoshihiko Noda, head of the main opposition Constitutional Democratic Party of Japan, in Tokyo on Sunday. Photo: Kyodo

Japan’s Prime Minister Shigeru Ishiba (right) and chairman of LDP Election Strategy Committee Shinjiro Koizumi pose with a pin above the name of a candidate who won the lower house election, at the LDP headquarters on Sunday. Photo: Pool via AP

Officials of the election administration committee count ballots for Japan’s general election in Tokyo on Sunday. Photo: AFP

Japan PM Ishiba’s defence reforms face election hurdle with LDP expected to lose ground

Japanese Prime Minister Shigeru Ishiba, head of the ruling Liberal Democratic Party, makes a stump speech in Takatsuki, Osaka prefecture, on October 21. Photo: Kyodo

Shigeru Ishiba (left) and Keiichi Ishii, secretary of junior ruling coalition partner Komeito, shake hands at the Komeito party’s convention in Tokyo on September 28. Photo: Kyodo

The Japan Ground Self-Defence Force holds a ceremony marking the launch of a new ground-to-ship missile unit in Uruma, Okinawa prefecture, in March. Photo: Kyodo

Yoshihiko Noda (right), leader of the Constitutional Democratic Party, shakes hands with a supporter after his election campaign speech in Kasukabe city of Saitama prefecture on Tuesday. Photo: AFP

Japan’s Ishiba seeks fresh mandate as election race tightens

A member of staff hands flyers out with the picture of Japan’s Prime Minister, Shigeru Ishiba, before his election campaign speech in Tokyo on Saturday. Photo: AFP

Japan’s Prime Minister Shigeru Ishiba (centre) arrives for an election campaign speech in support of the Liberal Democratic Party (LDP), in Tokyo, on Saturday. Photo: AFP

Yoshihiko Noda, leader of the Constitutional Democratic Party (CDP), delivering an election campaign speech in front of Shibuya station in Tokyo on Saturday. Noda was prime minister of Japan from 2011 to 2012. Photo: AFP

A member of the main opposition Constitutional Democratic Party of Japan delivers a stump speech as pedestrians walk through Shibuya crossing, during the last election campaign day in Tokyo, on Saturday. Photo: EPA/EFE

Will Japan PM Ishiba’s call for snap election backfire on him and ruling LDP?

Japan’s Prime Minister Shigeru Ishiba, leader of the Liberal Democratic Party, speaks at a campaign for the general election in Tokyo on Saturday. Photo: Reuters

Japan’s Prime Minister Shigeru Ishiba (right) and Yoshihiko Noda, leader of the Constitutional Democratic Party, during a debate at the Japan National Press Club in Tokyo on October 12. Photo: Pool via Reuters

People walk in front of a board displaying campaign posters of candidates running for the coming general election in Tokyo, Japan. Photo: EPA-EFE

News

Asia

East Asia

The LDP, which has ruled Japan for almost all of its post-war history, and junior coalition partner Komeito won just 215 seats


The LDP, which has ruled Japan for almost all of its post-war history, and junior coalition partner Komeito won just 215 seats.


Shinzo Abe

Asia elections

Fumio Kishida