Kishida to Step Down as Prime Minister
(Reuters) – Japanese Prime Minister Fumio Kishida announced he will resign in September, concluding a three-year term filled with political scandals. This opens the door for a new premier to tackle rising prices.
Kishida’s resignation initiates a race to select a new president of the ruling Liberal Democratic Party (LDP), thereby determining the leader of the world’s fourth-largest economy.
Reactions from Analysts
Koichi Nakano, Political Science Professor, Sophia University, Tokyo
“I expected Kishida would be unable to run for quite some time. He has surpassed the average tenure of an LDP prime minister and lacks a strong statistical standing. An incumbent cannot enter a party presidential race without assurance of victory—similar to yokozunas in sumo who must win with grace. If not, retirement is inevitable.”
Rintaro Nishimura, Associate at the Asia Group, Tokyo
“It’s an open field for the next president. Kishida’s endorsement will be key. The new leader should be a fresh face, reform-minded, demonstrating change for voters. They will face tough political challenges and likely elections soon after their appointment.”
Mikitaka Masuyama, Professor at the National Graduate Institute for Policy Studies
“Support for Kishida has dwindled, with rising calls for his resignation. The LDP’s leader is essential in uniting and managing the party. Experience is crucial; if Kishida endorses Foreign Minister Yoko Kamikawa, she could rise.”
Shoki Omori, Chief Japan Desk Strategist, Mizuho Securities, Tokyo
“Political uncertainty is unfavorable as Kishida not running for election creates confusion. The next leader’s policy direction will be unclear, likely impacting equities and risk-assets due to foreign investor focus.”
Charu Chanana, Head of Currency Strategy, Saxo, Singapore
“Kishida stepping down may introduce some uncertainty, but due to his low approval ratings, significant negative backlash from equities may be averted.”
Michael Cucek, Professor Specializing in Japanese Politics, Temple University, Tokyo
“Kishida’s position has been precarious. His inability to secure reelection was evident. Public discontent linked to LDP scandals and inflation pressures has culminated in this moment.”
Takahide Kiuchi, Nomura Research Institute Executive, Tokyo
“Concerns arose during Kishida’s administration due to an inconsistent policy focus, which zigzagged from redistribution to expansionary measures.”
Kenta Izumi, Leader of the Opposition Constitutional Democratic Party, Tokyo
“Kishida faced headwinds from unresolved issues, including the former Unification Church, political funding scandals, and inflation.”
Rahm Emanuel, US Ambassador to Japan, Tokyo
“Under Kishida’s leadership, Japan and the US have entered a new era of relations.”
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