Japan’s ruling coalition seen losing upper house majority, Asahi reports

TOKYO - Japan’s ruling coalition will likely lose its majority in the upper house election on July 20, the Asahi newspaper said on July 15, heightening the risk of political instability at a time the country is struggling to strike a trade deal with the US.

Japanese Prime Minister Shigeru Ishiba’s ruling Liberal Democratic Party (LDP) and its coalition partner Komeito will

likely struggle to retain

the 50 seats needed to defend its majority in the upper house of parliament, the Asahi said.

The LDP will likely win only around 35 seats, the paper said. The LDP currently holds 52 seats.

The benchmark 10-year Japanese government bond yield rose to 1.595 per cent on July 15, a level unseen since October 2008, as investors brace for the possible loss of fiscal hawk Ishiba as straining Japan’s already frail finances.

Small opposition parties like the Democratic Party for the People and Sanseito, which have called for cutting Japan’s sales tax rate, are likely to increase the number of seats they hold in the chamber, the Asahi said.

Mr Ishiba’s administration has seen approval ratings slide as the rising cost of living, including the soaring price of Japan’s staple rice, hits households.

“As during the previous campaigns, inflation remains a top concern for the public, putting the coalition on the defensive. Ishiba’s low approval ratings reflect voter dissatisfaction with the status quo,” Mr David Boling, a director at consulting firm Eurasia Group, said in a research note, adding he sees a 60 per cent chance of the ruling coalition losing its majority.

“Whether Ishiba steps down will hinge on how many seats the coalition loses,” he added.

Asahi said its report was based on phone and internet surveys conducted on July 13 and 14, as well as on nationwide research by the newspaper’s journalists. REUTERS