TOKYO (AP) — Shigeru Ishiba, the head of Japan's governing party, plans to call a parliamentary election to be held on Oct. 27 after he is elected as prime minister on Tuesday.
Ishiba was chosen as the Liberal Democratic Party's leader on Friday and is assured to also succeed Fumio Kishida as prime minister because the party's coalition controls parliament.
Ishiba mentioned the election date as he announced his top party leadership lineup Monday ahead of forming his Cabinet. The plan is not official since he is not prime minister yet, but Ishiba said he mentioned the date early for the logistical convenience of those who have to prepare on relatively short notice.
“I believe it is important to have the new administration get the public's judgment as soon as possible," Ishiba said.
He appointed former Environment Minister Shinjiro Koizumi, who came in third in the party leadership race, to head the party's election task force.
He is expected to name defense experts and his longtime confidantes Takeshi Iwaya as foreign minister and Gen Nakatani as defense chief once he takes office.
Ishiba has proposed an Asian version of the NATO military alliance and more discussion among regional partners about the use of the U.S. nuclear deterrence. He also suggested a more equal Japan-U.S. security alliance, including joint management of U.S. bases in Japan and having Japanese Self Defense Force bases in the United States.
The LDP has had a nearly unbroken tenure governing Japan since World War II. The party members may have seen Ishiba’s more centrist views as crucial in pushing back challenges by the liberal-leaning opposition and winning voter support as the party reels from corruption scandals that drove down Kishida's popularity.
Ishiba on Friday stressed Japan needs to reinforce its security, noting recent violations of Japanese airspace by Russian and Chinese warplanes and repeated missile launches by North Korea.
He pledged to continue Kishida’s economic policy aimed at pulling Japan out of deflation and achieving real salary increases, while tackling challenges such as Japan’s declining birthrate and population and resilience to natural disasters.
Ishiba, first elected to parliament in 1986, has served as defense minister, agriculture minister and in other key Cabinet posts, and was LDP secretary general under former Prime Minister Shinzo Abe.
Shigeru Ishiba, the head of Japan's governing party, the Liberal Democratic Party speaks during a press conference at the party's headquarters in Tokyo Monday, Sept. 30, 2024 to announce that he plans to call a parliamentary election on Oct. 27 after he is formally elected as prime minister. (Kyodo News via AP)
Shigeru Ishiba, the head of Japan's governing party, the Liberal Democratic Party speaks during a press conference at the party's headquarters in Tokyo Monday, Sept. 30, 2024 to announce that he plans to call a parliamentary election on Oct. 27 after he is formally elected as prime minister. (Kyodo News via AP)
Shigeru Ishiba, center, waves as he is elected as leader of the ruling Liberal Democratic Party after the party's leadership election, in Tokyo Friday, Sept. 27, 2024. (Kyodo News via AP)
HONG KONG (AP) — Global markets had a wild start to the week, with Tokyo’s Nikkei 225 index tumbling nearly 5% while Chinese markets soared on news of fresh stimulus for the faltering economy, with Shanghai up more than 8%.
In early European trading, France’s CAC 40 slipped 1.0% to 7,711.66, and Germany’s DAX lost 0.4% to 19,399.02. In London, the FTSE 100 declined 0.3% to 8,294.70. The futures for the S&P 500 and the Dow Jones Industrial Average edged 0.1% lower.
Japanese shares sank after the ruling Liberal Democrats chose former Defense Minister Shigeru Ishiba late Friday to succeed Prime Minister Fumio Kishida, who is due to step down on Tuesday.
Ishiba has expressed support for the Bank of Japan's moves to raise interest rates from their near-zero level. He also backs other policies, such as possibly raising corporate taxes, that are seen as less market friendly than his chief rival for the top job, Economic Security Minister Sanae Takaichi, who he beat in a run-off vote.
The Nikkei closed 4.8% lower at 37,919.55 on Monday.
The dollar fell from over 146 Japanese yen to under 143 yen after the ruling party’s vote. By Monday, it was trading at 142.38 yen, up from 142.29.
Exporters’ shares plunged, since a stronger yen is a disadvantage for Japanese companies that make a large share of their sales and profits overseas.
Toyota Motor Corp. dropped 7.6%. Honda Motor Co.'s shares fell 7.0% and Nissan Motor Co.'s declined 6.0%.
Ishiba has said he backs Kishida's “new capitalism” policies, which ostensibly would foster more equal distribution of national wealth. But sharply rising prices have undermined progress toward encouraging consumers to spend more.
Meanwhile, the Hang Seng in Hong Kong jumped 2.4% to 21,133.68, with Hong Kong’s Hang Seng Mainland Properties Index up 6.4%. The Shanghai Composite index surged 8.1% to 3,336.50. An index in the smaller market in Shenzhen jumped almost 11%.
The rallies were auspiciously timed, coming on the eve of a week-long national holiday marking 75 years of communist rule in China. Markets in mainland China will be closed Tuesday through Oct. 7.
China is moving forward with measures announced last week to support the property industry and revive languishing financial markets. The central bank announced on Sunday that it would direct banks to cut mortgage rates for existing home loans by Oct. 31. Meanwhile, the major southern city of Guangzhou lifted all home purchase restrictions over the weekend, while both Shanghai and Shenzhen revealed plans to ease key buying curbs.
The effort to wrest the housing market out of a prolonged downturn comes as the economy shows signs of slowing further. China’s manufacturing activity in September contracted for a fifth consecutive month, as the official purchasing managers’ index came in at 49.8, remaining below the 50 line that separates expansion from contraction, according to data from the National Bureau of Statistics released on Monday.
Elsewhere in Asia, Australia’s S&P/ASX 200 advanced 0.7% to 8,269.80. South Korea’s Kospi dropped 2.1% to 2,593.27.
On Friday, the S&P 500 edged down by 0.1% from its all-time high to 5,738.17. The Dow Jones Industrial Average rose 0.3% to 42,313.00, setting its own record, while the Nasdaq composite slipped 0.4% to 18,119.59.
Treasury yields eased in the bond market after a report showed inflation slowed in August by a bit more than economists expected. It echoed similar numbers from earlier in the month about inflation, but Friday’s report has resonance because it’s the measure that officials at the Federal Reserve prefer to use.
In other dealings, oil prices rose as tensions in the Middle East escalated. On early Monday, Israel launched the first apparent airstrike in nearly a year of conflict on the center of Lebanon’s capital, Beirut. This came after Hezbollah’s leader, Hassan Nasrallah, was killed in an air attack on Saturday. Benchmark U.S. crude oil added 49 cents to $68.67 per barrel. Brent crude, the international standard, rose 61 cents at $72.15 per barrel.
The euro was trading at $1.1193, up from $1.1163.
The New York Stock Exchange, center, is shown on Friday, Sept. 27, 2024, in New York. (AP Photo/Peter Morgan)
People walk by monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Monday, Sept. 30, 2024. (AP Photo/Hiro Komae)
A man walks by monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Monday, Sept. 30, 2024. (AP Photo/Hiro Komae)
A woman looks at monitors showing Japan's Nikkei 225 index at a securities firm as she waits at an traffic intersection in Tokyo, Monday, Sept. 30, 2024. (AP Photo/Hiro Komae)
A man stands by monitors showing Japan's Nikkei 225 index at a securities firm as he waits at a traffic intersection in Tokyo, Monday, Sept. 30, 2024. (AP Photo/Hiro Komae)
A man who called himself a trader takes a picture of monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Monday, Sept. 30, 2024. (AP Photo/Hiro Komae)
A man looks at monitors showing Japan's Nikkei 225 index at a securities firm in Tokyo, Monday, Sept. 30, 2024. (AP Photo/Hiro Komae)
