Japanese PM survives leadership vote at critical moment for a major US ally

Japan’s prime minister survived a leadership vote on Monday, even after his ruling coalition lost its majority last month in a snap election.

Splinters among the main opposition parties cleared the way for Shigeru Ishiba to remain as prime minister at a pivotal time for the US’ closest Asian ally, with Ishiba vowing to strengthen the country’s military and its US ties.

The return of Donald Trump — whom Ishiba is expected to meet later this month — could spark friction between Washington and Tokyo over trade, but the country’s market may be well positioned to ride those waves, the Financial Times’ Leo Lewis argued.

Japanese exporter and defense industry stocks rose after Trump won, and Ishiba’s government will likely be too weak to make any big policy shifts that might shake markets.