Japanese Prime Minister Shigeru Ishiba resigns following disappointing elections

Japanese Prime Minister Shigeru Ishiba resigned on Sunday, bowing to internal party pressure after a poor performance in July legislative elections.

Ishiba’s abrupt announcement — he was less than a year in the job — comes days after Tokyo finalized a trade deal with Washington setting 15% tariffs on Japanese exports to the US.

In his 11 months in power, Ishiba grappled with a sluggish economy, high inflation, and trade turmoil, Nikkei wrote, none of which he managed to fully resolve.

Japanese markets are braced for more volatility: Long-term bond yields have been hovering near record highs, and analysts believe Ishiba’s successor could see a return of “Abenomics” with ultra-loose monetary policy and fiscal stimulus.