<div style="text-align: justify; "><br></div><div style="text-align: justify;">Japan's parliament reelected Prime Minister Shigeru Ishiba on Monday after his governing coalition suffered the worst election loss in more than a decade.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Ishiba’s ruling Liberal Democratic Party and its junior partner Komeito together lost their majority in the 465-seat Lower House, the more powerful of Japan’s two-house parliament, in the Oct. 27 election due to continued voter outrage over financial misconduct by his party and its lukewarm response.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">A special parliamentary session convened Monday to pick a new leader in a vote required within 30 days of a general election. In the past, these votes did not attract as much attention because an LDP leader was virtually assured to be prime minister. Ishiba beat top opposition leader Yoshihiko Noda 221-160 in the first runoff in 30 years.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Most of his previous Cabinet members will be reappointed, but Ishiba will have to replace three who lost their seats or were affected by the election results.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Since the election loss, Ishiba has refused to step down, saying is willing to cooperate with additional coalition partners to boost stability and help him pursue his party’s policies. Noda, head of the centrist opposition Constitutional Democratic Party of Japan, has sought to form an opposition coalition — but so far unsuccessfully.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Ishiba will struggle in the coming months as he must gain consent from the opposition on policies including the budget and other legislation.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">He is eyeing a rising smaller, conservative opposition, the Democratic Party for the People, whose seats quadrupled to 28 under its popular leader Yuichiro Tamaki.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">A Harvard-educated former Finance Ministry bureaucrat, Tamaki has proposed raising the basic tax-free income allowance and increasing take-home wages, ideas that attracted low-income earners and younger voters in the election. He only wants to cooperate with Ishiba’s party on policy — not as part of a coalition — since he wants to use his leverage to increase his party’s standing ahead of the next election.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Tamaki was recently stung by a magazine article exposing an extramarital affair, which he admitted to on Monday, adding to political uncertainty.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Ishiba’s government is preparing for his trip later this month to Asia Pacific Economic Cooperation and Group of 20 summits, as well as a possible meeting with U.S. President-elect Donald Trump on his way home.</div><div style="text-align: justify;"><br></div><div style="text-align: justify; ">bnbd24/kh</div>