Shigeru Ishiba Set to Announce New Cabinet Amid Leadership Split

Japan's incoming Prime Minister, Shigeru Ishiba, will unveil his new Cabinet soon as he seeks to unify the LDP after a tight leadership race. Ishiba prepares for a snap general election, appointing key rivals to critical roles. His plans face challenges amid fluctuating market reactions and internal party dissent.

Japan's incoming Prime Minister, Shigeru Ishiba, aims to reveal his new Cabinet lineup on Tuesday, following the selection of key party positions on Monday, as he looks to unify a divided LDP after a razor-thin leadership contest.

Kyodo news agency reports a snap general election is expected on October 27 to determine which party will control parliament's lower house, with a possible dissolution on October 9. According to political analyst Shigenobu Tamura, Ishiba appears to be gearing up for the earliest election schedule.

In the wake of this internal shake-up, Japanese shares saw a steep decline of over 4% in early trading on Monday, influenced by the strengthening yen and rising government bonds. Despite Ishiba's efforts to incorporate key rivals like Katsunobu Kato as finance minister and Yoshimasa Hayashi as chief cabinet secretary, the exclusion of hardline conservative Sanae Takaichi poses challenges for Ishiba in managing a turbulent ruling group.

As reported, Takeshi Iwaya will take over as foreign minister and Gen Nakatani will return to the defense ministry. Additionally, Yoji Muto will lead the economy, trade, and industry ministry. An impending election, possibly in October, might see Shinjiro Koizumi managing Ishiba's election campaign, while former Prime Minister Yoshihide Suga could take the role of vice president in the LDP.