TOKYO (AP) — Japanese Prime Minister Shigeru Ishiba said Monday he will stay in office to tackle challenges such as rising prices and high U.S. tariffs after a weekend election defeat left his coalition with a minority in both parliamentary chambers.

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.”

The success of Japanese right-wing party Sanseito in Sunday’s upper house election has the potential to unnerve global investors, who have been among the strongest supporters of the nation’s equity markets.

Japanese Prime Minister Shigeru Ishiba on Monday stressed the need to establish a common understanding among parties on the pros and cons of cutting the country's sales tax rate.

The Japanese government said it is responding to "crimes and nuisances committed by some foreigners and inappropriate use of various systems."

Colin Graham of Robeco still sees the yen as 'incredibly cheap', and discusses the possibility of another occurrence of a carry trade unwind.

A weekend election in Japan has made real the prospect of bigger government spending and deficits in the world's most indebted developed nation, although for now foreign investors and a growing economy could keep its bond yields from spiking sharply.

Shigeru Ishiba is clinging on to power after the latest rebuke from the electorate. With crucial trade talks on the line, it’s time for him to go.