Japan’s Komeito exits coalition, threatening Takaichi’s PM bid

Takaichi became head of the Liberal Democratic Party (LDP) less than a week ago, and had been expected to be approved by parliament as premier this month.

But Komeito’s decision to end the alliance that has governed Japan almost uninterrupted for 25 years has plunged Japan into a new political crisis.

The yen dropped against the dollar following the announcement, while the Nikkei closed down 1.0 per cent.

“We want the LDP-Komeito coalition to go back to the drawing board for now and bring an end to our relationship,” Komeito party chief Tetsuo Saito told reporters after talks with the LDP.

“Given that we have not received clear and concrete cooperation from the LDP regarding our demands, and if these reforms prove impossible to achieve, I said [in the meeting] that it would be utterly impossible for us to write Sanae Takaichi’s name in the nomination,” he said.