TOKYO - Japanese Prime Minister Shigeru Ishiba denied rumors on July 23 that he would resign, despite sources and media reports suggesting he planned to step down after a tough defeat in the upper house election. The 68-year-old leader stated that reports of his resignation were "completely unfounded." Mr. Ishiba decided to delay his resignation immediately after the election in order to avoid political instability, especially with an August 1 deadline looming for finalizing a trade deal with the US, according to a source close to the prime minister who requested anonymity as they are not authorized to speak to the media.



Mr. Ishiba and Mr. Trump revealed a trade deal on July 22 that reduces tariffs on Japanese auto imports and prevents Tokyo from imposing new levies on other goods. 

According to Japanese media reports,

Mr. Ishiba is expected to announce his resignation in August.

If he does step down, his departure less than a year after taking office will lead to a succession battle within the ruling Liberal Democratic Party. The party is currently facing challenges from new political parties, particularly on the right, which are gaining support.

One of these parties is the far-right group "

Japanese First" Sanseito, which saw a surge in representation in the 248-seat upper house from one to 14 following the July 20 vote. The party has attracted voters with promises to limit immigration, reduce taxes, and provide financial assistance to households struggling with rising prices.

It is unlikely that the incoming leader will immediately call for a general election. Instead, they are expected to focus on strengthening the party's appeal before seeking a mandate from voters, according to sources. REUTERS#