Japanese Prime Minister Shigeru Ishiba on Monday stressed the need to establish a common understanding among parties on the pros and cons of cutting the country's sales tax rate.

Japan's Prime Minister Shigeru Ishiba faces an increasingly uphill battle in Sunday's upper house election, and a loss could worsen political instability at a time of daunting challenges, such as rising prices and high U.

Japan's Liberal Democratic Party, which Prime Minister Ishiba leads, secured 47 seats in parliament, short of the 50 it needs for a majority.

Japanese voters headed to the polls on Sunday in a tightly contested election amid public frustration over rising prices and the imminent threat of US tariffs. The ruling Liberal Democratic Party (LDP) and its junior coalition partner Komeito need to secure a combined 50 seats to retain an overall majority in the upper house but the latest polling shows they might fall short.

The LDP’s loss in the upper house is another blow to Prime Minister Shigeru Ishiba, who has been struggling to close a trade deal with the Trump administration.