Political Turmoil in Japan: Premier Ishiba Faces Mounting Pressure

Japanese Premier Shigeru Ishiba vowed to continue his leadership on Monday after his ruling coalition suffered a significant defeat in the upper house elections, sparking internal doubts about his leadership amid opposition calls for a no-confidence motion.

Ishiba confirmed his commitment to his post at a news conference, emphasizing the need to resolve critical challenges through negotiations with the U.S. and handling rising consumer prices, which burden the world's fourth-largest economy. However, market analysts predict potential leadership or coalition changes as opposition parties gain ground.

Investors remain anxious over Ishiba's stance on tax reforms and possible welfare spending, as Japan confronts its substantial debt. With the election results already factored in, Nikkei futures experienced slight gains, while concerns persist over unresolved U.S. tariffs scheduled for August.

(With inputs from agencies.)