Japan’s ruling party is in crisis as voters swing to right-wing rivals. Can a new leader save it?
The Liberal Democratic Party faces internal divisions and must tackle inflation and demographic decline while competing with rising right-wing parties, amid calls to regain public trust.
- On Saturday the Liberal Democratic Party will choose a new leader to replace the current leader, triggering the upcoming leadership vote in mid-October, as the party faces internal shifts.
- A funding scandal involving undocumented political funds and election setbacks in the past year have weakened the coalition and deepened Japan's demographic crisis.
- Sanae Takaichi leads opinion polls as a fiscal expansionist pushing tax cuts and stimulus, while Shinjiro Koizumi promises cost relief and rebuilding, and Yoshimasa Hayashi opposes large stimulus supporting BOJ rate hikes.
- Markets are on edge as Japanese markets pull back from highs and long-term bond yields react, while the new party leader must address rising prices, secure opposition votes, and prepare for a summit with U.S. President Donald Trump.
- The rise of parties like Sanseito has complicated coalition-building as right-wing gains and a foreign labour force exceeding 3.7 million last year pressure Japan's political landscape.
35 Articles
35 Articles

Japan's governing party is choosing a new leader Saturday to succeed Ishiba
Japan’s long-governing Liberal Democratic Party will choose a new leader Saturday to replace Prime Minister Shigeru Ishiba. The winner must quickly restore political stability and regain public support for the struggling party to stay in power. Three of the five…

Japan’s governing party is choosing a new leader Saturday to succeed Ishiba
TOKYO (AP) — Japan's long-governing Liberal Democratic Party will choose a new leader Saturday to replace Prime Minister Shigeru Ishiba, but the winner must…
How markets are scrutinizing political developments in Japan
What's happening in Japanese politics and how markets are assessing the scenarios. Anthony Willis, Investment Manager at Columbia Threadneedle Investments, provides an overview. This week, markets' attention is focused on Japan, where elections for a new leadership will be held this weekend following the resignation of Prime Minister Shigeru Ishiba, fresh from a double defeat in both the Upper and Lower Houses. The vote comes at a crucial time f…
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