Japanese Prime Minister Shigeru Ishiba has decided to resign to avoid a split within the ruling Liberal Democratic Party, public broadcaster NHK said on Sunday.
Japanese Prime Minister Shigeru Ishiba announced his reignation on Sunday in a press conference adding that he would continue his duties until a successor is elected.
Thus triggering the start of a long period of policy paralysis at a shaky moment for the world's fourth-largest economy.
Ishiba, 68, instructed his Liberal Democratic Party - which has governed Japan for almost all of the post-war era - to hold an emergency leadership race.
Since coming to power less than a year ago, Ishiba has overseen his ruling coalition lose its majorities in elections for both houses of parliament amid voter anger over rising living costs.
Until Sunday, he had refused calls to step down following the latest of those losses in July's upper house vote.
He had focused instead on ironing out details of a trade deal with the United States on President Donald Trump's tariffs, which have roiled Japan's critical automotive industry and cast a shadow over weak growth.
"With Japan having signed the trade agreement and the president having signed the executive order, we have passed a key hurdle," Ishiba said, his voice seeming to catch with emotion. "I would like to pass the baton to the next generation."
Concern over political uncertainty led to a sell-off in Japan's yen currency and its government bonds last week, with the yield on the 30-year bond hitting a record high on Wednesday.
Speculation over Ishiba's fate was stoked by the LDP's decision to schedule a vote for Monday on whether to hold an extraordinary leadership election.
Following the country’s growing political instability, the prime minister has faced calls to resign from mostly right-wing opponents within his party, who urged him to take responsibility for the results of a July’s vote.
Reports suggested that Japan’s agricultural minister and a former prime minister met with Ishiba on Saturday evening to persuade him to resign.
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Here’s your AnewZ Daily Brief for 25 September 2026, with five key developments from the third day of the 81st United Nations General Assembly in New York.
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