Following Japan's general election on Sunday, the ruling coalition of the Liberal Democratic Party (LDP) and its partner Komeito fell short of the majority threshold, bringing political uncertainty to an economy that is already facing an array of challenges.

The LDP and Komeito got 215 of the 465 seats in the powerful chamber of parliament, below the 233 seats needed for the majority. The LDP alone won 191 seats, much less than the 247 seats it held prior to the election.

In contrast, the main opposition Constitutional Democratic Party (CDP) significantly increased its representation, rising from 98 seats before the election to 148 seats.

Yoshihiko Noda, head of the CDP, remarked that the outcome demonstrated voters' desire for political reform.

The result is largely in line with media forecasts as public outrage over the LDP's funding scandal persisted. The last time the coalition lost a majority was in 2009.

The election results are likely to intensify inter-party negotiations across ruling and opposition blocs as they navigate legislative priorities and coalition building.

Following the poor showing, Prime Minister Shigeru Ishiba acknowledged the public's "harsh judgment," indicating plans to seek cooperation from other parties with whom his administration shares policy alignment to stabilize his government, according to public broadcaster NHK.

Smaller parties, like the Democratic Party for the People (DPP) and the Japan Innovation Party, may now play crucial roles in forming a government. The DPP secured 28 seats, while the Japan Innovation Party gained 38, according to NHK.

However, the DPP's leader Yuichiro Tamaki has rejected the idea of joining the ruling coalition, while the Japan Innovation Party is also negative about working with the LDP and Komeito, Kyodo News reported.

As mandated by the constitution, the Diet must convene a special session within 30 days of the election date to elect the prime minister. In the usual procedure, if the ruling coalition has a majority, the prime minister is typically elected in the first round of voting.

However, if no candidate receives a majority of the votes in the first round, the top two candidates will head to a runoff.

A total of 1,344 candidates ran in the country's 50th House of Representatives election, more than the 1,051 in the last such election in 2021.