Japan PM Shigeru Ishiba decides to resign, reports NHK.

Japan PM Shigeru Ishiba decides to resign, reports NHK.

Tokyo, September 2, 2025 — Japanese Prime Minister Shigeru Ishiba has announced his resignation, following weeks of political turmoil and internal party disputes. The decision comes after the resignation of his close aide, Liberal Democratic Party (LDP) Secretary General Hiroshi Moriyama, who cited the party's defeat in the July 20 upper house election as the reason for his departure [1].

Moriyama, known for his fiscal hawk stance, said he would resign to take responsibility for the election loss, leaving the final decision to Ishiba. The LDP has convened a joint plenary meeting of both houses to assess the defeat and decide on the next steps, including a potential leadership election [2].

Ishiba, who had initially resisted calls to resign, has stated that he will make an appropriate decision on Moriyama's resignation and the party's future course. However, there are growing calls within the party for an early leadership election, with Agriculture Minister Shinjiro Koizumi advising Ishiba to step down to prevent a split within the ruling party [3].

The decision to hold an early leadership election could signal a significant shift in Japan's political landscape and policy direction. A new LDP leader could push more aggressive economic measures, potentially increasing fiscal pressures and influencing the Bank of Japan’s interest rate hikes [4].

The resignation of Ishiba and the subsequent leadership election will add uncertainty to Japan's economic policy, potentially affecting investor sentiment and market stability. The LDP's internal wrangling has been a source of concern for investors, who are closely watching the political developments.

References:
[1] https://www.reuters.com/world/close-aide-japan-pm-ishiba-resign-key-party-post-2025-09-02/
[2] https://www.marketscreener.com/news/close-aide-to-japan-pm-ishiba-says-he-plans-to-resign-ce7c50d3da81f72d
[3] https://www.japantimes.co.jp/news/2025/09/07/japan/politics/koizumi-ishiba-ldp-presidential-race-decision/
[4] https://www.bloomberg.com/news/articles/2025-09-07/japan-s-ishiba-consults-allies-amid-calls-for-ldp-vote-reports