Japan's election outcome may put the central bank in a double bind as prospects of big spending could keep inflation elevated while potentially prolonged political paralysis and a global trade war provide compelling reasons to go slow on rate hikes.

Japan’s shaky ruling coalition is likely to lose its majority in the upper house, exit polls showed after Sunday’s election, potentially heralding political turmoil as a tariff deadline with the United States looms.

Liberal Democratic Party loses control of the Upper House in Japan as right-wing parties gain ground with younger voters amid rising prices and political fatigue.

The fringe far-right Sanseito party emerged as one of the biggest winners in Japan's upper house election, gaining support with warnings of a "silent invasion" of immigrants.

Its leader is a former supermarket manager who created his political party on YouTube in the depths of the coronavirus pandemic and campaigned on the Trumpian message “Japanese First.”

After months of fraught negotiations with the United States, Japan clinched a deal just days before punitive tariffs were scheduled to take effect.

The embattled prime minister said he would remain in office to oversee tariff talks with the United States and other pressing matters.

World markets are mixed after U.S. stock indexes hit new records. Oil prices fell and U.S. futures were little changed.

The LDP’s loss in the upper house is another blow to Prime Minister Shigeru Ishiba, who has been struggling to close a trade deal with the Trump administration.

Japan's prime minister is clinging to power today, but his outlook remains uncertain. This follows a weekend election that delivered several surprises. HPR's Bill Dorman has more in today's Asia Minute.