Takaichi’s bid for Japan’s prime minister was shaken after the Komeito Party withdrew from the ruling coalition, NHK reported.

Japan’s Komeito Party is reportedly withdrawing from the country’s ruling coalition led by the Liberal Democratic Party, a move that could derail Sanae Takaishi’s path to becoming the country’s first female prime minister.

Tetsuo Saito, chief representative of the Komeito Party, said the LDP “failed to provide adequate answers regarding political financing issues,” after his meeting with LDP Chairwoman Sanae Takaishi, the public broadcaster reported. The Japanese Broadcasting Corporation (NHK) said. Friday.

If the split is confirmed, it will end the political alliance that has existed since 1999. It comes just days before the parliamentary vote scheduled for October 15 to choose the next Japanese prime minister.

Nikkei reported earlier The Komeito Party announced on Friday that it had reservations about the alliance, and that Takaichi’s appointment as Japan’s next prime minister would be postponed until at least October 20.

Jesper Kohl, senior director at Monex Group, said Komeito had “overshot its purpose” for the LDP, noting that the party had been steadily losing supporters over the past decade.

“Any political strategist would agree that within three to five years, Komeito will likely become virtually irrelevant,” Cole said. “Takaishi is forcing this issue, thus effectively setting the direction for the new LDP.”

Takaishi won the LDP leadership race on October 4, defeating Agriculture Minister Shinjiro Koizumi to become the first woman to lead the party — and perhaps Japan’s first female prime minister.

Her victory follows that of Prime Minister Shigeru Ishiba resignation It was announced on September 7, after the Liberal Democratic Party lost its majority in both houses of parliament in 2024 and 2025, leaving it to govern as a minority.

The hardline conservative is widely described as the apostle of “Abenomics,” the economic strategy of the late Prime Minister Shinzo Abe, which embraced loose monetary policy, fiscal spending and structural reforms.

And after the news, yen It rose to 152.64 against the dollar, partly undoing the so-called “Takaishi trade” that pushed the yen beyond the 150 mark and sent Japanese stocks to record levels. This announcement came after the markets closed in Japan.

While Komeito’s withdrawal from the political alliance may seem detrimental to Takaishi and the LDP, she is still on track to become Japan’s first female prime minister, said Naka Matsuzawa, chief strategist at Nomura Securities.

Matsuzawa added that the opposition parties are not united to vote for someone else. “For now, her government will have to look for different partners depending on which bills it wants to pass.”

The LDP and Komeito currently hold 215 seats in the 465-seat assembly, fewer than the 233 seats needed to achieve a majority.

Komeito’s exit would leave the LDP with 191 seats, although the LDP remains the largest party in the lower house.

Saito said that the Komeito Party will not support Takaishi in the parliamentary vote on the next prime minister, according to what was reported by the Japanese Kyodo News Agency. Reuters report.

Its rise comes at a time of economic pressure at home and strained relations abroad — and tests whether Japan is doubling down on its commitment to the conservative, pro-Abenomics agenda that has characterized the past decade.

Takaishi has called for a tough stance toward China, and he supports reviewing Japan’s pacifist constitution, especially Article IX, which gives up Japan’s right to wage war.

Her previous visits to the controversial Yasukuni Shrine, which honors Japan’s war dead, including war criminals, have drawn criticism from China and South Korea, which see the site as a symbol of Tokyo’s wartime aggression.