Letter from Nikkei Asia’s editor: Japan’s political uncertainty

Letter from Nikkei Asia’s editor: Japan’s political uncertainty


Good afternoon. I am in Thailand for an editorial meeting with our producers from the region, and the turmoil rippling through Japanese politics is attracting significant interest even outside Japan. The ruling Liberal Democratic Party’s historic defeat last Sunday is still reverberating, with the LDP desperately rushing to forge policy agreements with the opposition Democratic Party for the People ahead of the Nov. 11 special session of the Diet, when legislators will vote to select a minister prime.

Remember, the main reason former Prime Minister Fumio Kishida abruptly substituted in August was to avoid defeat in the next general election and to restore the plunging trust in the LDP by bringing in a fresh face to helm the party. But look at what happened. I wonder what Kishida is thinking now, especially since he had no intention of stepping down earlier this year — he even believed he was the only one capable of turning the situation around for the party. Perhaps, like the late Prime Minister Shinzo Abe, he is considering a comeback.

In any case, it is fair to say that Prime Minister Shigeru Ishiba is in an extremely difficult position to lead the countryWhile the focus to be on the challenges the ruling trends party faces in implementing its budget or legislation without a parliamentary majority, there is another major risk inherent in this situation: If the opposition parties unite, they could pass a no-confidence motion against the cabinet at any time. If that happens, the prime minister will have only two options: resign or dissolve the lower house. This would undoubtedly create a highly unstable political situation for Japan.

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My suggested reads

1. With his majority lost in the Oct. 27 election, Japan’s Prime Minister Shigeru Ishiba must either form a new coalition or attempt minority government rule if he is to avoid the shortest tenure of any Japanese premier. The historic ballot also lays bare the institutional weaknesses that triggered it, and ushers in a new era of uncertainty with bureaucrats likely to assume greater authority.

2. Investment in Singapore’s technology-intensive startups is growing much faster than for other early-stage companies. This focus on the “deep-tech” sector has helped catapult the city-state to be the highest-ranked Asian center in the global startup ecosystem rankings.

3. Quick delivery startups have stumbled in many markets since the end of the pandemic, but Zepto CEO Aadit Palicha says it will be a different story in Indiawhere companies like his are aiming to meet unique domestic needs.

4. Ahead of the US presidential election on Nov. 5, investors are trying to gauge how the outcome might shape Asia’s financial markets. While Vice President Kamala Harris, the Democratic nominee, is expected to continue the trade policies of her predecessor, markets speculated that Republican nominee Donald Trump’s plans for across-the-board tariffs and other measures could have painful consequences for the region.

5. Sports psychologists say pregame rituals in team sports create commitment and loyalty. But do they translate into shocking? For New Zealand’s national rugby team, famous for its passionate performances of the ceremonial Maori war dance known as the haka, the answer just might be yes.

Through the lens

This week’s top photo pick: A Thai royal barge procession passes down the Chao Phraya River in Bangkok on Oct. 27 to mark the 72nd birthday of King Maha Vajiralongkorn. (Photo by Getty Images)

Check out more of our photo coverage here.

Wishing you a wonderful weekend!

Shin Nakayama

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