Gift Scandal Shadows Japan's Political Landscape

Japanese Prime Minister Shigeru Ishiba apologizes for providing gift certificates to ruling party lawmakers. The action risks damaging his administration's ratings and delaying the budget's passage. Amidst global economic uncertainties, this scandal may impact upcoming elections and Japan's economic plans.

Japanese Prime Minister Shigeru Ishiba issued an apology on Friday following the revelation that he gave gift certificates to members of the ruling party. This move could potentially dent his administration's approval ratings, already faltering, and might postpone the approval of the next fiscal year's budget.

This political turbulence casts a shadow on Ishiba's leadership as Japan gears up for an upper house election in July. Concurrently, the nation faces economic challenges due to the ongoing trade tensions instigated by U.S. President Donald Trump. "The market's volatility is increasing due to uncertainty over U.S. and European economic policies. However, domestic political events might also demand closer scrutiny," said Yusuke Matsumoto, a senior market economist at Mizuho Securities.

Ishiba admitted in parliament that he distributed gift certificates valued at 100,000 yen to fifteen Liberal Democratic Party lawmakers as a token of appreciation, using his personal funds. Despite his clarification that the actions were legal and personal, the gesture attracted criticism, spurring calls for his resignation even from coalition allies. If the annual budget fails to pass by March 31, the government could be compelled to implement a provisional budget, undermining Ishiba's political influence and impeding economic plans.

(With inputs from agencies.)