Japanese Prime Minister Fumio Kishida announced he will resign in September after a three-year term marked by scandals, setting the stage for a new leader to tackle rising prices. Kishida cited the need for public trust in politics and expressed his intent to support the new Liberal Democratic Party (LDP) leader.
His resignation triggers a leadership contest within the LDP, influencing Japan’s future direction. Kishida’s popularity declined due to controversies involving the LDP’s connections with the Unification Church and unrecorded political donations. Additionally, dissatisfaction grew over stagnant wages amid rising living costs.
Read more: Bangladesh PM Hasina Wajid Steps Down Following Demands From Protesters
Kishida’s tenure, the eighth-longest in post-war Japan, saw efforts to recover from the COVID pandemic with significant stimulus and leadership changes at the Bank of Japan. His departure may impact fiscal and monetary policies, affecting risk-assets like equities. Kishida also continued strong security policies, increasing defense spending and improving relations with South Korea and the U.S.
