Japanese PM Fumio Kishida to Step Down Amid Scandals, Raises Political Uncertainty

Japanese Prime Minister Fumio Kishida announced his resignation, concluding a three-year term marred by political scandals. His departure introduces uncertainty in Japanese politics, affecting risk assets and equities. Responses from market and political analysts emphasize the unclear future policies and the ongoing issues the new premier will need to address.

Japanese Prime Minister Fumio Kishida's decision to resign in September ends a tumultuous three-year term marked by political scandals. His departure is set to introduce significant uncertainty in Japanese politics.

Shoki Omori from Mizuho Securities warns that political instability will likely impact risk assets, particularly equities, given foreign investors' sensitivities. Michael Cucek from Temple University highlights long-standing public discontent linked to scandals involving the LDP and rising inflation pressures.

Koichi Nakano of Sophia University notes Kishida was already on shaky ground given the average tenure of LDP prime ministers. Takahide Kiuchi of Nomura Research Institute stresses recent inconsistent policies, while opposition leader Kenta Izumi indicates unresolved issues. U.S. Ambassador Rahm Emanuel praised Kishida's leadership, emphasizing strengthened U.S.-Japan relations.

(With inputs from agencies.)