MNI BRIEF: Japan Ruling LDP Coalition Loses Majority: Press
MNI (TOKYO) - Japan's Liberal Democratic Party and its ruling coalition partner, Komeito, lost their majority in the lower house of parliament on Sunday for the first time since 2009, casting uncertainty over Prime Minister Shigeru Ishiba's government less than a month after he took office, the Nikkei reported.
The LDP, led by Ishiba, and Komeito won a combined 215 seats by Nikkei's count, falling short of the 233 needed to maintain a majority in the 465-seat chamber.
The opposition parties secured 235 seats. Both sides are expected to try to form a ruling majority coalition.
The Bank of Japan’s policy normalisation path will not be impeded by the results alone, but bank officials will need to pay attention to higher inflation and interest rates as the government will likely combine stimulus measures involving issuance of government bonds.
The results will increase uncertainty over the political situation, possibly causing a weaker yen and stocks, and volatility in financial markets. (See MNI POLICY: BOJ Watching Potential JGB Hike Risk Underpricing)
The main opposition Constitutional Democratic Party (CDP) won 148 seats in the chamber, up from 98 before the election, while the Democratic Party for the People also increased its seven seats to 28.