Takaichi reshuffles ruling party's executive lineup

TOKYO — Japanese Prime Minister Sanae Takaichi, who also heads the ruling Liberal Democratic Party, reshuffled the party's executive lineup on Wednesday.

In her first reshuffle since taking the helm of the ruling party last October, Takaichi retained most of the LDP's executive members as she seeks to maintain continuity ahead of a packed legislative agenda through the end of the year, Kyodo News reported.

In key positions, former prime minister Taro Aso remained LDP vice-president, and Shunichi Suzuki kept his post as LDP secretary-general. Meanwhile, Diet affairs committee chief Hiroshi Kajiyama replaced Haruko Arimura as head of the LDP's decision-making General Council.

Among other appointments, Hideki Murai, a former deputy chief cabinet secretary, succeeded Hiroshi Kajiyama as the LDP's Diet affairs chief. Junichi Ishii, the party's secretary-general in the upper house, was replaced by Kazuhiko Aoki.

Kyodo News said Ishii has been seen as being on poor terms with the prime minister for locking horns with the opposition in the chamber.

Japanese media analyses suggested that Takaichi's latest reshuffle is aimed primarily at maintaining her power base within the party and securing another term as LDP president in next fall's party leadership election.

In a recent report, the Asahi Shimbun pointed out that Takaichi has no faction of her own within the party and received backing from Aso's faction in last October's LDP presidential race. Aso and his brother-in-law Suzuki are among the key pillars underpinning the Takaichi administration. Should Takaichi disregard Aso, running her government would likely become difficult.

Takaichi is also set to reshuffle her cabinet on Thursday. Japanese media previously reported that Hiroshi Nakatsuka, secretary-general of the Japan Innovation Party, or JIP, is all but certain to join the cabinet.

Analysts said that with a JIP member joining Takaichi's cabinet, the LDP-JIP ruling coalition will shift from cooperation outside the cabinet to cooperation within it.

Trade deficit

Meanwhile, Japan posted a trade deficit of 1.1 trillion yen (around $7.1 billion) in August, marking the fourth consecutive month of red ink, government data showed on Wednesday, as elevated crude oil prices continued to weigh on the country's trade balance.

Imports jumped 28 percent from a year earlier to 11.15 trillion yen, the Finance Ministry said in a preliminary report. Notably, the value of crude oil imports surged 58.7 percent to 1.19 trillion yen, reflecting a weaker yen and higher costs incurred to secure oil supplies amid the ongoing conflict in the Middle East.

In the reporting month, Japan's crude oil imports from the Middle East tumbled 30.9 percent from the previous year as shipments through the Strait of Hormuz remained disrupted, forcing the resource-poor country to turn to alternative crude oil sources.

The Bank of Japan is expected to meet later on Friday to decide on its benchmark interest rate. Markets are already pricing in a rise to 1.25 percent from the current 1 percent.

A stronger yen would help at a time when the nation must import oil and other products, including food and raw materials.

It would hurt giant exporters like Toyota Motor by reducing the value of exports when converted into yen.

Takaichi is promising more government spending, as well as a reduction of the consumption tax on food.

XINHUA-AGENCIES