Japanese Prime Minister Shigeru Ishiba announced his resignation on Sunday, triggering a leadership race within the ruling Liberal Democratic Party (LDP).
Ishiba, 68, cited the completion of a key trade agreement with the United States and recent electoral setbacks as reasons for stepping down.
His departure follows the LDP’s loss of parliamentary majority and growing public frustration over rising living costs.
Ishiba will remain in office until a successor is chosen.
The announcement has rattled financial markets, with Japan’s yen and government bonds facing sharp sell-offs.
The LDP is expected to hold an emergency vote on Monday to determine the path forward.
