Japanese Prime Minister Shigeru Ishiba's ruling coalition has failed to secure a majority in Sunday's election for the 248-seat upper house of parliament, Japan's public NHK TV outlet said.
The Liberal Democratic Party (LDP), already in a minority in the lower house since last October's snap election, faced mounting public discontent over inflation, political scandals, and a surge in anti-immigration sentiment.
LDP, Komeito fall short in upper house
The LDP and its junior partner Komeito needed to win 50 of the 125 contested seats, on top of the 75 seats they already have. They fell short, however, getting only 46 of the seats up for grabs.
In recent years, such an electoral defeat has usually led to a prime minister's resigniation. Ishiba, however, vowed to stay on in order to lead Japan through the difficult terrain of striking a trade deal with the US in the face of looming tariffs.
"We are engaged in extremely critical tariff negotiations with the United States...we must never ruin these negotiations," he told a press conferenece after vowing to stay on as party leader through the trade talks.
The loss is another blow to Ishiba's coalition, making it a minority in both houses following its October defeat in the lower house election, It is the first time the LDP has lost a majority in both houses of parliament since the party's foundation in 1955.
Despite his determination to stay on, Ishiba could face calls from within his party to step down or find another coalition partner.
Japan's snap election backfires on ruling party
Rise of the 'Japanese First' party
The surge of the right-wing populist Sanseito party has complicated the race.
Once a fringe movement, spreading conspiracy theories about vaccinations and global elites during the COVID-19 pandemic on YouTube, the party is now gaining momentum with its "Japanese First" rhetoric and criticism of immigration, globalism, and foreign capital.
Exit polls suggested that Sanseito could win at least 7 seats, appealing especially to young male voters.
Its leader, Sohei Kamiya, has drawn comparisons to Trump and Germany's AfD for his anti-establishment stance and social media reach.
On Sunday, a Sanseito candidate's interview by Russia's Sputnik news agency courted controversy and prompt denials of ties to Russia by Kamiya, according to AFP news agency.
The European Union has banned Sputnik along with other Russian state media for "disinformation and information manipulation."
Edited by: Alex Berry, Wesley Dockery