'Resignation of Japanese Prime Minister Fumio Kishida sparks reactions: 'Pulling a Joe Biden'"

• According to U.S. Ambassador to Japan Rahm Emanuel, who posted on social media platform X, the prime minister is a true friend of the United States and Japan has become a true global partner for America.
• Australian Prime Minister Anthony Albanese similarly paid tribute to Fumio Kishida.
• One expert compared the move to U.S. President Joe Biden's decision to drop out of the presidential race less than a month ago.

In September, Japanese Prime Minister Fumio Kishida will resign, prompting a variety of responses from government officials and experts.

Kishida's decision not to run for reelection as leader of Japan's ruling Liberal Democratic Party has opened the door for a new prime minister to lead the world's fourth-largest economy.

One expert compared the move to U.S. President Joe Biden's decision to drop out of the presidential race less than a month ago.

"William Pesek, author of "Japanization: What the World Can Learn from Japan's Lost Decades," stated that in his opinion, Kishida's actions can be seen as a "Joe Biden moment" where he realizes he may not be the best fit for his party during election time."

Kishida's tenure was marked by a scandal involving his party and an economy vulnerable to deflationary pressures, while Biden withdrew after a poor debate performance.

The leader of Japan's largest opposition party, the Constitutional Democratic Party of Japan, acknowledged that the issues have not been resolved yet and promised to continue pursuing action to address them. However, Izumi thanked Kishida for his efforts and added, "Prime Minister Kishida, you must have been under a lot of pressure."

Kishida stated in a press conference on Wednesday that the LDP needs a fresh leadership face and he felt compelled to resign in order to restore public trust, as per a Reuters translation.

Kishida's leadership was appreciated by diplomats and officials, who expressed gratitude for the relationships they established with Japan while he was prime minister.

According to U.S. Ambassador to Japan Rahm Emanuel, who posted on social media platform X, the prime minister is a true friend of the United States and Japan has become a true global partner for America.

Kishida's leadership has led to a new era of relations for the Japan-US Alliance, as Emanuel noted. Kishida has also helped establish partnerships and security alliances in the Indo-Pacific region.

Australian Prime Minister Anthony Albanese similarly thanked his Japanese counterpart.

"My friend Prime Minister Fumio Kishida is honored and appreciated for his unwavering commitment to the significant bond between Japan and Australia. His leadership has played a crucial role in enhancing this relationship," he stated.

Shihab Alfaheem, the UAE's Ambassador to Japan, expressed his gratitude for Kishida's efforts and the advancement of their countries' relationship. He stated that they are constantly working to improve their bond.

One strategist argued Kishida stepping down had been in the cards.

Amir Anvarzadeh, market strategist at Asymmetric Advisors, stated that "he was a dead man walking for a long time" and that "the weakness of the yen" was the main factor that led to his downfall. He added that "it was basically BOJ's policy mistakes that got him really out of the polls."

The Bank of Japan recently increased its benchmark interest rate from 0% to 0.1% to "around 0.25%," marking its highest rates since 2008. This move led to a strengthening of the yen and an aggressive unwinding of the yen-funded carry trade, which contributed to the recent dramatic sell-off in global markets.

The prime minister's term was effectively terminated by the BoJ, according to Crédit Agricole Corporate and Investment Bank's note.