Japan’s Incoming PM Ishiba Calls Election for October 27, Aiming to Unify Party – Reuters

TOKYO (Reuters) – Japan’s incoming prime minister, Shigeru Ishiba, announced on Monday that he will schedule a general election for October 27, following his victory in a highly competitive leadership contest for the ruling Liberal Democratic Party (LDP).

This election, taking place a year ahead of schedule and before the U.S. presidential election in November, will determine the party that controls the lower house of parliament. Lawmakers are set to convene tomorrow to officially confirm Ishiba as the country’s next prime minister.

“It is important for the new administration to be judged by the people as soon as possible,” Ishiba stated at a press conference held at LDP headquarters in Tokyo.

Japanese stocks declined by more than 4% in early trading on Monday, triggered by a strengthening yen and a surge in Japanese government bonds, following Ishiba’s leadership victory. He is perceived as a hawk regarding monetary policy.

On Monday, Ishiba began assembling the government and party officials who will campaign alongside him in the upcoming election.

Current appointments include Katsunobu Kato as finance minister and Yoshimasa Hayashi to continue as chief cabinet secretary, a key role that encompasses responsibilities as the main government spokesperson, according to two sources familiar with the situation.

Takeshi Iwaya, a close ally of Ishiba and a former defense chief, will be appointed as foreign minister, while Gen Nakatani will return to the defense ministry, a position he previously held in 2016. The sources, who requested anonymity, confirmed earlier media reports.

Yoji Muto, a former junior minister, is set to lead the ministry of economy, trade, and industry, according to a separate source.

However, notable by her absence is Sanae Takaichi, the hardline conservative Ishiba narrowly defeated in the leadership election by a margin of 215 votes to 194. Her exclusion could complicate Ishiba’s efforts to unify a divided ruling party facing scandals that have weakened its public support.

Media reports indicating that Takaichi has declined a government position could signal weaknesses in Ishiba’s support base, potentially leading to difficulties in his administration moving forward, remarked Hiroshi Shiratori, a political science professor at Hosei University in Tokyo.

Ishiba has selected another rival, Shinjiro Koizumi, to serve as his campaign chief, along with former Prime Minister Yoshihide Suga, a Koizumi supporter, who will take on the role of party vice president. Both individuals attended his press conference on Monday.

At 67 years old, Ishiba secured the LDP leadership on his fifth attempt, garnering substantial backing from grassroots party members. However, he is often regarded as a contentious figure among his parliamentary peers for his tendency to contradict party policies. Following his runoff election against Takaichi, he apologized to LDP lawmakers for his “shortcomings.”