Japanese Prime Minister announces resignation after election setback.

Arabian Sea Newspaper - Special

Arab Sea - Follow-ups: Japan's Prime Minister announced his resignation on Sunday after voices within his Liberal Democratic Party rose, demanding a change in leadership following an electoral setback that left his coalition without a parliamentary majority. The official NHK channel had earlier confirmed that Ishiba made his decision to avoid a split within the party ranks. The Asahi Shimbun newspaper also said that he was unable to withstand the increasing calls for his resignation. Since taking office last year, the coalition led by the Liberal Democratic Party, headed by Ishiba, has lost its majority in the parliamentary chamber elections, amid voter anger over rising living costs. Party deputies are scheduled to vote on Monday on the possibility of holding extraordinary elections to choose a new leadership or not. Ishiba had rejected calls from within his party to step down and take responsibility for losing control of the House of Councillors, the upper house of parliament, in July. Political paralysis may exacerbate the difficulties facing the economy affected by US tariffs, but markets are more focused on the opportunity to replace Ishiba with a supporter of easing fiscal and monetary policy. With his resignation, Ishiba's last act in office will be to finalize the details of a trade agreement with the United States last week, under which Tokyo pledged to inject $550 billion in investments in exchange for lower US tariffs on Japan's key automotive sector.