Race for Leadership: Japan's New Political Chapter Unfolds

In the wake of Prime Minister Shigeru Ishiba's unexpected resignation, former Japanese Foreign Minister Toshimitsu Motegi declared his intention to contest the leadership of the Liberal Democratic Party. The political shake-up comes as Japan grapples with economic uncertainty.

Ishiba's resignation, announced Sunday, has sparked a flurry of speculation about Japan's future as the world's fourth-largest economy seeks stability. The political vacuum temporarily buoyed the stock market, weakened the yen, and saw government bonds maintain their ground. Many speculate that increased government spending could be on the horizon.

Chief Cabinet Secretary Yoshimasa Hayashi, along with other possible candidates like Sanae Takaichi and Shinjiro Koizumi, are in the race. Takaichi, known for opposing Bank of Japan's rate hikes, could be Japan's first female prime minister. Meanwhile, Koizumi's reformist stance and political lineage draw public interest as he contemplates reintroducing trust in a scandal-tainted party.

(With inputs from agencies.)