Japan’s LDP loses its parliamentary majority

In in the present day’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 occasion has misplaced its parliamentary majority, in a surprising rebuke by voters that plunges the nation into political uncertainty.

The LDP’s worst electoral reversal for 15 years, which can depart the occasion struggling to control and lately anointed Prime Minister Shigeru Ishiba beneath strain to resign, got here in a snap election he known as to strive to attract a line beneath a slush-fund scandal.

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

“Taking a look at outcomes, it’s true voters have handed us a harsh verdict and we now have to humbly settle for this outcome,” Ishiba advised 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 regulate 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 may set off excessive volatility in markets in the present day. 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 conserving tabs on in the present day:

• Financial knowledge: Malaysia publishes the September produce worth index and Hong Kong releases exterior merchandise commerce knowledge 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 high 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 advised the FT: “We had hats and cat ears, and so they’re like ‘you’ll be able to’t try this this 12 months, except you’re going to Disneyland’ or one thing.” 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 a right away 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 known as for protests after preliminary leads to a parliamentary election confirmed victory for the ruling occasion. The pivotal vote was broadly seen as a selection between a future in Europe or alignment with Russia.

4. EssilorLuxottica has expressed its “full help” to chief technique officer Leonardo Maria Del Vecchio, the late founder’s son, after Milanese prosecutors positioned him beneath 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 by company cyber defences and more and more tricking prospects 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 autos may change the way in which we transfer round cities, writes Vinod Khosla, the founding father of Khosla Ventures.

• Battle of the billionaires: A small variety of large spenders may assist swing the results of the US presidential election, in response to an FT evaluation.

Chart of the day

With the US presidential election getting into its ultimate days, high officers warned that an “alarming” lurch in 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 & Residence.