Japan, Upper House and ruling coalition
Digest more
The embattled prime minister said he would remain in office to oversee tariff talks with the United States and other pressing matters.
Ishiba's ruling Liberal Democratic Party and its junior coalition partner Komeito were short three seats to maintain a majority in the 248-seat upper house in Sunday's vote.
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.