Exit polls suggest a major loss for the Liberal Democratic Party in parliamentary elections, but Prime Minister Shigeru Ishiba is vowing to stay on.

Prime Minister Shigeru Ishiba remains opposed to a consumption tax cut, but opposition parties are expected to intensify calls for such measures after gaining more seats in Sunday's House of Councillors election.

The LDP’s election loss would be another blow to Prime Minister Shigeru Ishiba, who has been struggling to close a trade deal with the Trump administration.

Exit polls from a key election in Japan project the ruling coalition is set to lose its majority, putting the country's Prime Minister Shigeru Ishiba under immense political pressure. Voters headed to the polls earlier on Sunday for the tightly-contested election, being held amid public frustration over rising prices and the threat of US tariffs.

Japanese Prime Minister Shigeru Ishiba’s political standing took a major hit on Sunday as his coalition lost its hold on the upper house of parliament, according to projections by Japanese media outlets Nippon TV and TBS.

Japan’s Prime Minister Shigeru Ishiba faces a critical test in Sunday’s upper house election. A loss could deepen political instability as his government struggles with rising prices, U.S. tariffs and voter dissatisfaction.

Japan's upper house election on Sunday dealt a big blow to the ruling coalition and sets markets up for possible policy paralysis and a bigger fiscal deficit, much of which is already priced in, analysts said.