TOKYO – Shigeru Ishiba, Japan’s incoming prime minister, is set to appoint key party figures on Monday, followed by the formation of a new Cabinet on Tuesday, as he seeks to unify the ruling Liberal Democratic Party (LDP) after a historically close leadership contest. This comes ahead of a general election that may be called as early as October.
Ishiba has tapped two of his former rivals from the leadership race for significant roles: Katsunobu Kato as finance minister and Yoshimasa Hayashi, who will remain chief cabinet secretary, a position that also serves as the government’s top spokesperson.
On Monday, Japanese shares dropped more than 4% due to the strengthening yen, reflecting concerns over Ishiba’s victory, as he is seen as a monetary policy hawk.
In other appointments, Ishiba ally and former defense chief Takeshi Iwaya will take over as foreign minister, while Gen Nakatani will return as defense minister, a role he held in 2016. However, Sanae Takaichi, whom Ishiba narrowly defeated in the leadership race by 215 votes to 194, has not been included in reported appointments, raising concerns over managing the divided LDP.
In a Sunday interview, Ishiba hinted at the possibility of calling a general election in October, though no specific details were shared. Shinjiro Koizumi, another rival who has pushed for a snap election, will reportedly serve as Ishiba’s election campaign chief. Former Prime Minister Yoshih.