Shigeru Ishiba denied he had decided to quit after a source and media reports said he planned to announce his resignation to take responsibility for a bruising upper house election defeat.

The reports come after Trump announced a trade deal with Japan, and days after Ishiba's governing coalition lost its majority in the country's upper house.

The embattled prime minister said he would remain in office to oversee tariff talks with the United States and other pressing matters.

As rumours swirl of Shigeru Ishiba’s resignation, a leadership contest now looms that risks tearing the Liberal Democratic Party apart.

Embattled Japanese Prime Minister Shigeru Ishiba is facing speculation that his days are numbered after facing a historic defeat in the upper house election on Sunday.

Japan's prime minister quashed media speculation of his imminent resignation hours after his government secured a trade deal with the US. Shigeru Ishiba has been under growing pressure to step down after his ruling Liberal Democratic Party’s defeat in the Upper House election.

World markets are mixed after U.S. stock indexes hit new records. Oil prices fell and U.S. futures were little changed.