Japan's Election Shake-up: Coalition Loses Majority as Opposition Gains Ground

Japan's ruling coalition suffered a significant loss in the national election, losing its parliamentary majority. The Liberal Democratic Party (LDP) and Komeito now hold 209 seats, down from 279. This outcome may lead to political instability and impact the economy, as opposition parties gain momentum.

In a stunning turn of events, Japan's ruling coalition has lost its parliamentary majority in the recent national election, raising questions about the future of the Shigeru Ishiba-led government and implications for Japan's economy, the fourth-largest worldwide. With votes nearly all counted, the LDP and its junior partner Komeito secured only 209 seats, significantly down from their previous 279.

This marks the most disappointing election for the coalition since 2009, suggesting potential shifts in Japan's political landscape. The primary beneficiary of the coalition's decline is the main opposition party, the Constitutional Democratic Party of Japan (CDPJ), which increased its tally to 143 seats from 98. Voter dissatisfaction over political scandals and inflation axed the ruling party's standings.

This electoral shift may lead to complex government formations and political instability. The election's aftermath is likely to influence Japan's economic policies and relations, with potential impacts on market movements as investor confidence falters amid heightened uncertainty.

(With inputs from agencies.)