LDP Loses Lower House Majority in Japan Election

Japan's ruling Liberal Democratic Party (LDP) suffered a historic defeat in the snap general elections, losing its majority in the lower house for the first time since 2009. This outcome, driven by public dissatisfaction over rising living costs and political scandals, is a significant setback for new Prime Minister Shigeru Ishiba, who called the election to solidify his leadership and distance the party from previous corruption issues. While the LDP and its coalition partner Komeito failed to secure the 233 seats needed for a majority, Ishiba may need to seek additional coalition partners to pass legislation. This political uncertainty in Japan could temporarily slow down engagements with key international partners like India, as the country navigates forming a new government. The election results have also sparked concerns about potential impacts on global markets, particularly regarding the Bank of Japan's monetary policies.