Japanese Prime Minister Fumio Kishida announces he will resign in September | Japan

Japanese Prime Minister Fumio Kishida has said he will not run for president of the ruling Liberal Democratic Party (LDP) next month – a decision that will see the appointment of a new leader of the world’s fourth-largest economy.

Kishida, who is battling low approval ratings and a damaging funding scandal, has said he will step down as LDP leader in September, telling reporters on Wednesday that the party needs “open competition to promote debate.”

It ends a three-year term marked by scandals, rising costs of living and record military spending.

Kishida’s decision will trigger a contest to replace him as party chairman, with the winner certain to be approved as prime minister by the LDP-controlled parliament.

His successor will face growing international uncertainty, the election of a new US president and, in the United States, growing concern about the cost of living crisis.

Among those named as potential successors are Shigeru Ishiba, a centrist former defense secretary, and Taro Kono, the flamboyant digital minister.

The LDP presidential race could also include female candidates, raising the possibility that Japan will have a female prime minister for the first time.

Ultra-conservative Economic Security Minister Sanae Takaichi and former Interior Minister Seiko Noda both ran against Kishida in the 2021 party leadership race and could decide to run again, though it is unclear whether either will be able to secure the support of at least 20 lawmakers required to enter the race.

Foreign Minister Yoko Kamikawa has also been mentioned as a potential candidate.

This is a breaking news story, please check back regularly for updates.