Despite his business-as-usual demeanour, Ishiba is under increasing pressure to resign after the LDP and junior coalition partner Komeito lost their majority in Sunday’s election in Japan’s 248-member upper house,

Sanseito leader Sohei Kamiya's xenophobic views, antisemitic remarks and emphasis on Japan’s ethnic purity have raised alarms.

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.