Political Shifts: Japan's Prime Minister Steps Down Amidst Turmoil

Japanese Prime Minister Shigeru Ishiba announced on Sunday his decision to resign, aiming to avert a division within his ruling Liberal Democratic Party, according to local media reports. This unexpected political shift injects fresh uncertainty into Japan, the world's fourth-largest economy.

Ishiba, who assumed office last September, has faced decreasing support following electoral defeats attributed to rising living costs. Unwilling to relinquish power initially, he faced pressure from his party to step down after losing the upper house majority in July.

The looming resignation has led to volatility in financial markets, noticeably impacting the yen and government bonds. Observers are watching closely to see if Ishiba's successor might advocate for more relaxed economic policies, potentially reshaping Japan's fiscal landscape.

(With inputs from agencies.)