Japan's Ishiba may face leadership challenge on Monday

FILE PHOTO: Japan's Prime Minister Shigeru Ishiba, wearing a formal attire, walks toward the upper house hall to attend an opening ceremony of the parliamentary session in Tokyo, Japan August 1, 2025. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) -Lawmakers of Japan's ruling party will vote on Monday whether to hold an extraordinary leadership election that could oust embattled premier Shigeru Ishiba and have a significant impact on the world's fourth largest economy.

Concern over political uncertainty has led to a sell-off in the yen and Japanese government bonds (JGB) this week, with the yield on 30-year bonds hitting a record high on Wednesday.