Japanese ruling party faces biggest election defeat since 2009 as voters turn away
Japanʼs long-ruling LDP party lost its majority in parliament after sundays snap-election. Exit polls show significant gains for opposition while financial markets prepare for post-election uncertainty
In a major political shake-up Japans dominant Liberal Democratic Party lost its parliamentary majority on oct-27th. Exit polls show Shigeru Ishibaʼs LDP securing only 153-219 seats (way below the needed 233 seats) which means the party must look for coalition partners
The Constitutional Democratic Party made big gains jumping from 98 to 135 seats; showing voters dis-satisfaction with LDPʼs handling of economy and various scandals. The opposition partyʼs success marks its strongest performance in more than a decade
This election has been very tough for us
The LDPʼs grip on power (which lasted almost non-stop since mid-1950s) faces serious challenges due to:
- Un-recorded donations to lawmakers
- Rising inflation problems
- Cost-of-living issues
- Previous leader Fumio Kishidaʼs sudden exit
Financial experts predict market uncertainty: the yen and stocks might drop while govt bond yields could rise. “The voters judgement on the ruling bloc was harsher than expected“ - market analyst Saisuke Sakai points out that foreign investors might start selling-off their holdings
The timing is extra important as US elections are coming in about a week which adds more complexity to Japanʼs fourth-largest economyʼs situation. Ishiba says heʼll wait for final results before discussing any power-sharing deals
