Shigeru Ishiba Begins Leadership with Major Appointments

Shigeru Ishiba, Japan's incoming prime minister, is set to fill key party and cabinet posts to unify the ruling LDP after a tight leadership race. Key appointments include rivals Katsunobu Kato as finance minister and Yoshimasa Hayashi as chief cabinet secretary. Ishiba's selections may herald a general election soon.

Shigeru Ishiba, Japan's incoming prime minister, is swiftly moving to fill key party positions on Monday, followed by establishing a new Cabinet on Tuesday. This comes as he aims to consolidate leadership after one of the closest races in the ruling Liberal Democratic Party's history, ahead of a general election.

Among Ishiba's notable appointments are former leadership rivals, with Katsunobu Kato set to become the finance minister and Yoshimasa Hayashi continuing as chief cabinet secretary, sources told Reuters. The financial markets reacted sharply, with Japanese shares dropping over 4% due to concerns over Ishiba's hawkish monetary policies.

Additionally, Takeshi Iwaya, a close ally and former defense chief, will be appointed as foreign minister, while Gen Nakatani will reprise his role as defense minister. Notably absent from the initial reports is Sanae Takaichi, narrowly defeated in the leadership race, which may pose challenges for Ishiba in managing a divided party. Ishiba hinted at the possibility of a general election as early as October in a recent televised interview. Another election rival, Shinjiro Koizumi, will spearhead his election campaign, and former Prime Minister Yoshihide Suga is slated to become the party's vice president.

(With inputs from agencies.)