Some media outlets, including Yomiuri, have reported that Prime Minister Shigeru Isiba is planning to resign in the near future. The official allegedly made this decision after his party's recent defeat in the election. As a reminder, S. Isiba’s party failed to secure seats in the upper house of the Japanese Parliament.
However, following these reports, the prime minister himself made a public statement denying the claims. According to S. Isiba, he has no intention of stepping down. The prime minister emphasized that discussions about his resignation had not taken place and suggested that the reports of his alleged plans to step down were entirely unfounded. Nonetheless, the current political situation is not in S. Isiba’s favor.
On July 31, the ruling Liberal Democratic Party (LDP) of Japan will hold an internal meeting. Based on its outcome, S. Isiba may be removed from office.
The election loss dealt a serious blow to the ruling coalition led by the LDP, which will now have to work with regional parties. Most likely, they will need to cooperate with some of their opponents in order to pass new legislation.
The Yomiuri report came just hours after US President Donald Trump announced a trade deal with Japan. According to the US leader, he reached a major deal with the Asian nation, under which its goods will be subject to a 15% export tariff. He also stated that the Land of the Rising Sun would invest $550 billion in the United States, allowing America to take 90% of the profit.
Earlier, S. Isiba welcomed the deal, stating that he would remain in office at least until the trade agreement with the US is finalized.
Against this backdrop, the Japanese stock market showed mixed dynamics. Many stocks rose, ignoring the sell-off in the bond market. As for the yen, it traded under slight pressure after two days of gains, struggling to balance between trade news and political uncertainty. The dollar/yen pair hovered near 147.00, gaining just 0.2%.
