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Japan’s Ruling Coalition Faces Upper House Defeat, Political Shifts Ahead

Japan's political landscape faces potential upheaval as exit polls and media projections indicate Prime Minister Shigeru Ishiba's ruling coalition may lose its upper house majority. Initial results suggest the Liberal Democratic Party (LDP) and junior partner Komeito secured approximately 41 of 125 contested seats – falling short of the 50 needed to maintain control of the 248-seat chamber.

Major networks Nippon TV and TBS reported the coalition's struggle to retain influence, while NHK exit polls showed a wider projected range of 32-51 seats. The right-wing Sanseito party emerged as an unexpected challenger, potentially increasing its presence from 2 to 22 seats.

This electoral setback compounds challenges for Ishiba, who assumed office less than a year ago. The coalition previously lost control of the more powerful lower house in October 2023 snap elections, forcing it into minority status. Analysts suggest the upper house results could trigger leadership challenges within the LDP and reshape Japan's policy direction on economic reforms and regional security matters.

Market observers are monitoring potential impacts on Japan's fiscal policies and foreign investment climate, while regional partners await clarity on continuity in diplomatic engagements. The final results, expected within 48 hours, will determine the scale of political reorganization required to maintain legislative functionality.

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