Japan's ruling coalition seen losing upper house majority, polls show

Japan's Prime Minister and Liberal Democratic Party President Shigeru Ishiba arrives for a debate with leaders of eight political parties at the Japan National Press Club in Tokyo, Japan, July 2, 2025. Tomohiro Ohsumi/Pool via REUTERS/File Photo

TOKYO (Reuters) -Japan's ruling coalition will likely lose its majority in the upper house election on July 20, media polls showed on Tuesday, heightening the risk of political instability at a time the country struggles to strike a trade deal with the U.S.

Japanese bond yields soared as investors braced for the possible loss of fiscal hawk Prime Minister Shigeru Ishiba, which could strain the country's already frail finances.