The Sanseito party tapped into discontent over issues galvanizing voters worldwide: inflation, immigration and a political class dismissed as out of touch.

The success of the Sanseito party could reshape Japan’s domestic and foreign policy. It also aligns Japan with political trends in many other parts of the world.

Japan's leader Shigeru Ishiba faces mounting political pressure as his ruling coalition is set to lose its majority in the House of Councilors on Sunday.

Japan's election outcome may put the central bank in a double bind as prospects of big spending could keep inflation elevated while potentially prolonged political paralysis and a global trade war provide compelling reasons to go slow on rate hikes.

A fringe far-right populist party Sanseito was one of the biggest winners in the weekend's upper house election, attracting many voters with “Japanese First" platform that included calling for tougher restrictions on foreigners and the curtailment of gender equality and diversity policies.