Japan's Ruling Coalition Faces Major Setback in Elections

Japan's ruling coalition is on the brink of losing majority control in the upper house, according to exit polls from the latest election held on Sunday. This development poses a significant challenge to Prime Minister Shigeru Ishiba, as the country grapples with potential political instability.

The Liberal Democratic Party (LDP) and its coalition partner Komeito required 50 seats to maintain authority over the 248-seat upper chamber. Predictions suggest they might secure between 32 to 51 seats, risking their weakest performance since 1999. A precarious situation is heightened by the coalition's prior underwhelming outcome in the lower house elections.

Opposition parties are gaining ground, leveraging public dissatisfaction amidst soaring consumer prices, notably rice. The contrast between the LDP's fiscal restraint and public demand for consumption tax cuts underscores a key voter concern. As Japan nears an August trade deadline with the U.S., these political and economic tensions compound further challenges.

(With inputs from agencies.)