Japan's ruling coalition has lost its parliamentary majority, with projections from public broadcaster NHK indicating that the Liberal Democratic Party (LDP) and its coalition partner, Komeito, will fall short of the 233 seats required to retain control of the lower house.
Early Monday, NHK estimated that the ruling bloc would secure only 214 seats, with just one of the 465 seats remaining undeclared.
The opposition parties, including the Constitutional Democratic Party (CDP) and the Democratic Party for the People (DPP), have made notable gains.
This marks the first time since 2009 that the LDP has lost its lower-house majority.
In response to the political uncertainty, the dollar strengthened against the Japanese yen as Asian markets opened Monday, gaining 0.5% to reach 153.09.
The loss is expected to raise political uncertainties in Japan, however, a change of government is not expected.
Instead, the outcome may compel parties into challenging power-sharing arrangements, as Japan confronts economic challenges and a tense security environment in East Asia.
Prime Minister Ishiba called the snap election shortly after his recent election as party leader, seeking a public mandate for his leadership.
His predecessor, Fumio Kishida, resigned amid declining support linked to public frustration over rising living costs and a scandal involving unreported donations to lawmakers.
During his campaign, Ishiba committed to alleviating household burdens amid rising living costs and outlined plans for rural revitalisation to address Japan’s demographic and aging population challenges.
Following the electoral setback, Ishiba is expected to convene with top officials on Monday to discuss the coalition's next steps.