Ishiba, 67, called Sunday's election only days after taking office on October 1, aiming to bolster his position and that of his scandal-hit Liberal Democratic Party (LDP), which has governed Japan almost constantly for seven decades.
But national broadcaster NHK and other media outlets predicted in the hours after polls closed that the LDP — in the party's worst result since 2009 — together with its long-term junior coalition party Komeito had fallen short of the 233 seats needed for a majority in Japan's lower house.
Falling short of a majority does not mean a change of government, but the results would make it difficult for Ishiba to get his party’s policies through parliament, and he may need to find a third coalition partner.
Voters in Japan have been rankled by rising prices and the fallout from a party slush fund scandal that helped sink previous premier Fumio Kishida.
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