The Latest Breaking News from Shigeru Ishiba

Japan’s ruling Liberal Democratic party (LDP) suffered a severe blow on October 27 when, alongside its smaller coalition partner, Komeito, it lost its majority in a snap general election. The ruling coalition took 215 seats, fewer than the 233 required, with the centre-left opposition Constitutional Democratic party making big gains.

The Bank of Japan warned Thursday of "high uncertainties" following the ruling party's worst election result in 15 years, as it kept interest rates unchanged.

Asian stocks got off to an uneven start on Thursday following a weak lead from Wall Street, though better-than-expected manufacturing data from China provided a glimmer of good news for Beijing.

Political uncertainty after Japan's election shock risks slowing economic reforms, pushing up government spending and even holding up the Bank of Japan's exit from its outlier monetary policy, economists said.