FirstFT: Japan’s LDP loses its parliamentary majority

In right this moment’s e-newsletter:

• Japan’s ruling coalition loses its majority

• Shanghai cracks down on Halloween

• Lunch with sinologist Li Cheng

Good morning. Japan’s ruling coalition led by the Liberal Democratic social gathering has misplaced its parliamentary majority, in a shocking rebuke by voters that plunges the nation into political uncertainty.

The LDP’s worst electoral reversal for 15 years, which is able to go away the social gathering struggling to manipulate and lately anointed Prime Minister Shigeru Ishiba underneath stress to resign, got here in a snap election he referred to as to strive to attract a line underneath a slush-fund scandal.

The lack of the coalition’s beforehand snug majority was a a lot worse outcome for the social gathering than most analysts had forecast and displays surging discontent in Japan after years of stagnant wage progress mixed with latest sharp will increase in the price of residing.

“Looking at results, it is true voters have handed us a harsh verdict and we have to humbly accept this result,” Ishiba informed broadcaster NHK in an interview.

NHK seat counts confirmed that the LDP and its a lot smaller coalition accomplice Komeito fell effectively in need of the 233 seats wanted to manage Japan’s decrease home of parliament. With all seats declared by 5.45am native time, the LDP had secured solely 191, whereas Komeito had 24.

Economists warned that the citizens’s unexpectedly extreme punishment of the LDP might set off excessive volatility in markets right this moment. Tokyo bureau chief Leo Lewis has extra on the shock outcomes and what comes subsequent for the LDP.

Right here’s what else I’m holding tabs on right this moment:

• Financial information: Malaysia publishes the September produce value index and Hong Kong releases exterior merchandise commerce information for the month.

• State go to: Finnish President Alexander Stubb begins an official go to to China.

• New Zealand: Monetary markets are closed for Labour Day.

5 extra prime tales

1. Shanghai authorities have cracked down on Halloween costumes, amid fears of a repeat of final 12 months’s mass gathering that included individuals carrying outfits with political messages. One scholar informed the FT: “We had hats and cat ears, and they’re like ‘you can’t do that this year, unless you’re going to Disneyland’ or something.” Learn the complete story.

2. Iran’s supreme chief Ayatollah Ali Khamenei has signalled a measured response to Israel’s assault on the Islamic republic slightly than an instantaneous reprisal. In a public speech a day after Israel launched three waves of strikes on Iran, Khamenei tried to stability home expectations with the chance of escalating regional battle.

3. Georgia’s opposition has referred to as for protests after preliminary leads to a parliamentary election confirmed victory for the ruling social gathering. The pivotal vote was broadly seen as a alternative between a future in Europe or alignment with Russia.

4. EssilorLuxottica has expressed its “full support” to chief technique officer Leonardo Maria Del Vecchio, the late founder’s son, after Milanese prosecutors positioned him underneath investigation as a part of a sprawling probe into the alleged trafficking of illegally acquired non-public info.

5. Banks and regulators are warning that QR code phishing scams are slipping via company cyber defences and more and more tricking clients into giving up their monetary particulars. Right here’s extra on the rise of so-called “quishing” assaults.

Lunch with the FT

Li Cheng, one of many pre-eminent students of elite Chinese language politics, discusses the breakdown of US-China relations, what Xi Jinping’s fourth time period may maintain — and why neither Kamala Harris nor Donald Trump makes him hopeful of change.

We’re additionally studying . . . 

• A courageous new world on Russia’s doorstep: Central Asia’s 5 states are more and more standing up for themselves on issues of language, historical past and identification, writes Tony Barber.

• Robotaxi pods: These self-driving, on-demand automobiles might change the best way we transfer round cities, writes Vinod Khosla, the founding father of Khosla Ventures.

• Battle of the billionaires: A small variety of large spenders might assist swing the results of the US presidential election, based on an FT evaluation.

Chart of the day

With the US presidential election getting into its last days, prime officers warned that an “alarming” lurch in the direction of financial protectionism dangers derailing the worldwide financial restoration. Donald Trump has pledged to impose across-the-board tariffs of 20 per cent on America’s companions, in addition to a 60 per cent tax on Chinese language imports, whereas pursuing mass deportation of undocumented immigrants and sweeping tax cuts.

Take a break from the information

Diwali begins on Thursday with festivities in India and internationally. Los Angeles-based meals author Radhi Devlukia-Shetty shares how she celebrates the pageant of sunshine in an interview with Home & House.