Tokyo, July 21 (V7N) — Japan’s yen strengthened on Monday after Prime Minister Shigeru Ishiba, under mounting political pressure, announced his intention to remain in office despite his ruling coalition's loss of majority control in Sunday’s upper house elections.
The currency saw moderate gains in early Asian trading, driven in part by market uncertainty and a shift toward safe-haven assets. Analysts suggest that political instability often boosts demand for the yen, viewed globally as a refuge in times of turmoil.
Prime Minister Ishiba, speaking at a press conference following the election results, acknowledged the public’s dissatisfaction but affirmed he would not resign. “I take full responsibility for the outcome,” he said, “but stepping down now would only deepen the country’s uncertainty. My duty is to ensure continuity and stability.”
The ruling coalition, led by Ishiba’s Conservative Reform Party, lost several key districts, falling short of the 122-seat majority needed in the 248-seat House of Councillors. While not affecting the government’s immediate legislative control — as the lower house holds more power — the result is seen as a symbolic blow to Ishiba’s leadership and a reflection of growing public frustration over stagnant wages, rising living costs, and controversial defense reforms.
Investor reaction was cautious. The yen traded at 153.40 per U.S. dollar early Monday, up from 154.10 on Friday. Japanese equities were mixed, with the Nikkei 225 slightly down by midday, reflecting investor concern over potential policy paralysis.
Political analysts say Ishiba now faces pressure not only from the opposition but also within his own party. Factions have begun openly discussing the need for a leadership review ahead of next year's general election. “This is a warning shot,” said political commentator Hiroshi Nakata. “If Ishiba cannot deliver economic results or party unity soon, his position will become untenable.”
Despite the growing calls for change, Ishiba emphasized his focus on passing a stalled economic stimulus package and continuing talks on constitutional amendments related to national defense.
The government’s ability to function in the short term remains intact, but the path forward is likely to be turbulent. With economic challenges mounting and political confidence shaken, Japan’s leadership is entering a critical phase that could reshape its future trajectory.
END/WD/SMA/
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