Shigeru Ishiba's Resignation Sparks Political Shifts in Japan

Japanese Prime Minister Shigeru Ishiba is poised to resign, sources reveal, as political dynamics in the world's fourth-largest economy face a possible overhaul. Ishiba's resignation comes amid escalating political pressure following significant election losses exacerbated by mounting living costs.

Since ascending to power, Ishiba's tenure was marked by efforts to ease U.S. trade tensions affecting Japan's automotive industry. However, with his anticipated departure and a looming leadership contest within the Liberal Democratic Party (LDP), attention turns to potential successors like Sanae Takaichi and Shinjiro Koizumi.

The prospect of Ishiba stepping down has rattled market confidence, witnessed by the yen's depreciation and a bond sell-off. Economic insiders speculate on policy shifts under new leadership, particularly with Takaichi's critique of Japan's current fiscal strategy, signaling a potentially transformative political phase.

(With inputs from agencies.)