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.

Japan’s shaky ruling coalition is likely to lose its majority in the upper house, exit polls showed after Sunday’s election, potentially heralding political turmoil as a tariff deadline with the United States looms.

Japanese Prime Minister Shigeru Ishiba’s ruling coalition has lost its majority in the upper house of parliament.

The embattled prime minister said he would remain in office to oversee tariff talks with the United States and other pressing matters.

Its leader is a former supermarket manager who created his political party on YouTube in the depths of the coronavirus pandemic and campaigned on the Trumpian message “Japanese First.”

World markets are mixed after U.S. stock indexes hit new records. Oil prices fell and U.S. futures were little changed.

The fringe far-right Sanseito party emerged as one of the biggest winners in Japan's upper house election, gaining support with warnings of a "silent invasion" of immigrants.

Japan's prime minister is clinging to power today, but his outlook remains uncertain. This follows a weekend election that delivered several surprises. HPR's Bill Dorman has more in today's Asia Minute.