TOKYO (Reuters) -Japan’s incoming prime minister, Shigeru Ishiba, will fill key party posts on Monday followed by a new Cabinet on Tuesday as he tries to unite a party split by one of its closest ever leadership races ahead of a likely snap general election.
That poll, which will decide which party controls parliament’s powerful lower house, will come on Oct 27, Kyodo reported.
Among Ishiba’s key picks so far are two rival candidates in the leadership race, Katsunobu Kato as finance minister and Yoshimasa Hayashi to stay on as chief cabinet secretary, a pivotal post that includes the role of top government spokesman, a source familiar with the appointments earlier told Reuters.
Japanese shares fell more than 4% on Monday as the yen strengthened in reaction to the leadership victory by Ishiba, who is seen as a monetary policy hawk.
A close Ishiba ally, Takeshi Iwaya, a former defence chief, will take over as foreign minister, while Gen Nakatani will return to the defence ministry, a position he held in 2016, the source, who asked not to be identified because they are not authorized to speak to the media said, confirming earlier media reports. Yoji Muto, a former junior minister, will take charge at the economy, trade and industry ministry, a separate source said.
Absent, however, from picks so far reported in local media is Sanae Takaichi, the hardline conservative he beat by 215 votes to 194 on Friday in the closest leadership election in almost seven decades.
Takaichi’s exclusion could make it difficult for Ishiba to manage a fractious ruling group roiled by scandals that have sapped its public support.
Media reports that Takaichi has declined a post “could point to a weakness in Ishiba’s support base, which could cause him problems going forward,” said Hiroshi Shiratori, a political science professor at Hosei University in Tokyo.
In a televised interview on Sunday, Ishiba did not discuss his cabinet appointments, but suggested he may call a general election in October. A poll must be held within the next 13 months.
Another rival, Shinjiro Koizumi, who has called for a snap election, will be his election campaign chief, according to a local media report. Former Prime Minister Yoshihide Suga, who backed Koizumi, will be his party vice president, the sources said.
(Reporting by Reuters staff; writing by Tim Kelly; Editing by Lincoln Feast.)
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