The make-up of Japan's future government was in flux on Monday after voters punished Prime Minister Shigeru Ishiba's scandal-tainted ruling coalition, leaving no party with a clear mandate to lead the world's fourth-largest economy.
The uncertainty sent the yen currency to a three-month low as analysts prepared for days, or possibly weeks, of political wrangling to form a government and potentially a change of leade
That comes as the country faces economic headwinds, a tense security situation fuelled by an assertive China and nuclear-armed North Korea, and a week before U.S. voters head to the polls in another unpredictable election.
Ishiba's Liberal Democratic Party (LDP) and its junior coalition partner Komeito took 215 seats in the lower house of parliament, down from 279 seats, as voters punished the incumbents over a funding scandal and a cost-of-living crunch. Two cabinet ministers and Komeito's leader, Keiichi Ishii, lost their seats.
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