Japanese Premier Shigeru Ishiba pledges to stay in power amid internal party pressure following significant losses in the upper house elections. Facing criticism, he aims to handle crucial issues like U.

Japan’s political landscape could be on the brink of major upheaval after exit polls showed Prime Minister Shigeru Ishiba’s ruling coalition likely lost its majority in the country’s upper house following a key national election Sunday.

Japanese Prime Minister Shigeru Ishiba vowed to stay in his post after his ruling bloc was projected to lose its majority in the country’s upper house of parliament.

The loss on Sunday left the Liberal Democrats a minority party in both houses of Parliament, while two new nationalist parties surged.

Japan’s Prime Minister Shigeru Ishiba faces a critical test in Sunday’s upper house election. A loss could deepen political instability as his government struggles with rising prices, U.S. tariffs and voter dissatisfaction.

The Sanseito party tapped into discontent over issues galvanizing voters worldwide: inflation, immigration and a political class dismissed as out of touch.

Anti-establishment parties focused on wages, immigration and an unresponsive political elite struck a chord with working-age people in Japan.

Japanese were voting Sunday for seats in the smaller of Japan's two parliamentary houses in a key election with Prime Minister Shigeru Ishiba and his ruling coalition facing a possible defeat that could worsen the country's political instability.

FILE - Incumbent Tokyo Gov. Yuriko Koike celebrates after she was elected for Tokyo's gubernatorial election in Tokyo, Sunday, July 7, 2024. Multiple women competing for a top political office is still rare in Japan, but Koike’s win highlights a gradual rise in powerful female officials and a society more open to gender balance in politics.

Political uncertainty in Japan after the ruling coalition’s heavy loss in the Upper House election is likely to weigh on the yen, HSBC said.