For much of the past two months, ever since the historic loss of Japan’s LDP in July’s parliamentary elections, we have mocked the highly unpopular Japanese PM Shigeru Ishiba, who was clinging to the post despite record disapproval and a clear shift in popular sentiment that had clearly stripped him of mandate to be Japan’s leader.
A few hours ago, Ishiba finally decided to prove us wrong and announced he will step down – following weeks of calls for his departure – a decision that will set in motion a leadership race that may generate concerns for investors.
“While I feel there are still things I wish to do as premier, I have made the difficult decision to step down,” Ishiba said at a press conference in Tokyo on Sunday. “Having seen the US trade negotiations through, I felt that now is the right time to stand down and give way to my successor.”
“I felt that if I continued amid a vote on an early leadership race, it could have created an irreversible division within the party, which is certainly not my intention.” He will stay on as prime minister until his successor takes over.
Ishiba’s resignation brings to an end a tenure marked by humiliating election results that stripped the Liberal Democratic Party’s ruling coalition of its majorities in both chambers of parliament and left market participants unsure of Japan’s fiscal plans. His departure is likely to fuel uncertainty among investors over the coming weeks until a new leader is chosen. It will also likely spark debate among market participants whether his replacement will follow through with the trade deal that Japan reach with Trump.
Hellbound and Down 