Japan's LDP, Japan Innovation Party sign coalition agreement

Japan's ruling Liberal Democratic Party (LDP) and the Japan Innovation Party on Monday formally agreed to form a coalition government, with party leaders Sanae Takaichi and Hirofumi Yoshimura signing a written agreement.

The deal will effectively pave the way for LDP President Sanae Takaichi to secure victory in the upcoming prime ministerial designation vote.

The agreement outlined a wide-ranging policy agenda, including swift implementation of economic relief measures, constitutional reform, and major structural reforms, national broadcaster NHK reported.

Facing severe challenges both at home and abroad, the two parties have decided to "overcome differences in position and build a stable government to achieve a revival of Japan," said the report.

The two parties also confirmed they will cooperate in the prime ministerial designation vote scheduled for the extraordinary Diet session convening on Tuesday.

Japan's prime minister is chosen through a vote in both chambers of the National Diet. A candidate who wins a simple majority in the first round is declared elected. If no candidate reaches that threshold, a runoff is held between the top two contenders, with the one receiving more votes declared the winner.

Citing the ruling party's "insufficient" response to a high-profile political funds scandal, Japan's Komeito earlier this month terminated its decades-old coalition with the LDP, triggering the latest realignment in Japan's political landscape.