Japanese new Prime Minister Shigeru Ishiba stated that he would call a general election after his victory, Reuters reported.
The election, which will be held on 27 October, a year early and ahead of the US presidential election in November, will determine which party controls the lower house of parliament. Lawmakers will meet on Tuesday to confirm Ishiba as the country’s next prime minister.
It is important for the new administration to be judged by the people as soon as possible.
Japanese stocks fell more than 4 per cent in early trading on Monday as the yen strengthened and government bonds jumped in response to Ishiba’s victory. On Monday, he began selecting cabinet and party officials to run with him in the upcoming general election.
There are currently two rival candidates in the leadership race, Katsunobu Kato for finance minister and Yoshimasa Hayashi, who will remain as chief cabinet secretary. Takeshi Iwaya, a former defence minister, will take over as foreign minister, while Gen Nakatani will return to the defence ministry, a position he held in 2016.
Yoji Muto, a former junior minister, will head the Ministry of Economy, Trade and Industry. However, Ishiba’s choice does not include Sanae Takaichi, whose absence could make it difficult for him to manage a volatile ruling group plagued with scandals.
Ishiba chose another rival, Shinjiro Koizumi, as his campaign manager, as well as former prime minister Yoshihide Suga as the party’s new vice president. Both joined him at a news conference on Monday.
Shigeru Ishiba, 67, won the Liberal Democratic Party leadership race at the fifth attempt with strong support from ordinary members. However, many of his parliamentary colleagues believe he often defies party policy.
