Shigeru Ishiba: Japan's Incoming PM Faces Immediate Leadership Tests

Shigeru Ishiba, Japan's incoming prime minister, is set to fill key posts in his party and cabinet amidst a fractious environment. Ishiba must navigate leadership divisions, appoint critical roles, and potentially call a snap general election on October 27. Exclusions of prominent rivals signal potential challenges ahead.

Japan's incoming prime minister, Shigeru Ishiba, is poised to make significant changes to key party posts on Monday and unveil a new Cabinet on Tuesday. His efforts aim to unite a deeply divided party following one of the closest leadership races in recent history, ahead of a possible snap general election.

The general election, which Kyodo reports will determine control of the powerful lower house of parliament, is expected to take place on October 27. Ishiba has already made some critical appointments, including placing rivals Katsunobu Kato as finance minister and Yoshimasa Hayashi as chief cabinet secretary, according to sources.

The financial markets reacted sharply to Ishiba's victory, with Japanese shares plummeting more than 4% amidst concerns over his monetary policy stance. Ishiba will also see close ally Takeshi Iwaya taking over as foreign minister, while Gen Nakatani returns to the defense ministry. However, Sanae Takaichi, whom Ishiba narrowly defeated in the leadership race, has been noticeably absent from his picks, raising questions about internal party challenges.

(With inputs from agencies.)