Japanese PM Shigeru Ishiba Set to Resign After Election Setback

Japanese Prime Minister Shigeru Ishiba is expected to step down following a significant defeat in the upper house election, according to sources informed about the development. Despite media speculations, Ishiba denies having made a final decision but is set to resign after securing a crucial trade deal with the United States.

A close source revealed that Ishiba chose not to resign immediately post-elections to maintain political stability, especially with a critical trade deal deadline with U.S. President Donald Trump looming. Ishiba will reportedly announce his resignation next month, as widely covered by Japanese media.

The newly established trade agreement, announced by Ishiba and Trump, aims to reduce tariffs on Japanese automobile imports, averting potential punitive measures on other goods. Ishiba's imminent departure will open a leadership battle within the ruling Liberal Democratic Party, amidst challenges from emerging political entities gaining traction in parliament.

(With inputs from agencies.)