Japan's incoming prime minister, Shigeru Ishiba, announced on Monday that he will call a general election for October 27, following his victory in one of the closest leadership races in the history of the ruling Liberal Democratic Party (LDP). The election, which is set to take place a year earlier than scheduled and just before the US presidential election in November, will determine which party controls the lower house of parliament. Lawmakers are expected to confirm Ishiba as the country's next prime minister on Tuesday.
"It is crucial for the new administration to be evaluated by the people as soon as possible," Ishiba stated during a press conference at LDP headquarters in Tokyo. Japanese shares experienced a decline of over four percent in early trading on Monday as the yen strengthened and Japanese government bonds surged in response to Ishiba's leadership win, which is perceived as a shift towards a more hawkish monetary policy stance.
Ishiba began selecting government and party officials who will contest the upcoming general election alongside him. Among his initial picks are Katsunobu Kato as finance minister and Yoshimasa Hayashi to continue as chief cabinet secretary, a key position that includes the role of top government spokesperson. Takeshi Iwaya, a close ally and former defence chief, will assume the role of foreign minister, while Gen Nakatani will return to the defence ministry, a position he held in 2016.
Yoji Muto, a former junior minister, will head the economy, trade, and industry ministry. Notably absent from Ishiba's selections is Sanae Takaichi, the hardline conservative he defeated by 215 votes to 194 in the closest leadership election in nearly seven decades. Takaichi's exclusion could complicate Ishiba's efforts to manage a ruling group plagued by scandals that have eroded public support.
Media reports suggesting that Takaichi has declined a post "could indicate a vulnerability in Ishiba's support base, potentially causing challenges in the future," according to Hiroshi Shiratori, a political science professor at Hosei University in Tokyo. Ishiba also appointed Shinjiro Koizumi as his election campaign chief and former Prime Minister Yoshihide Suga, a Koizumi supporter, as the party's new vice president. Both joined him at his press conference on Monday.
At 67, Ishiba won the LDP leadership race on his fifth attempt, benefiting from strong support from rank-and-file members. However, he is viewed by many of his parliamentary colleagues as a maverick who frequently defies party policy. Prior to his run-off election against Takaichi, Ishiba apologized to LDP lawmakers for his "shortcomings."
