The road to Japan’s trade deal with the U.S. just got longer and more winding as Prime Minister Shigeru Ishiba’s coalition lost its majority in the upper house following the election held on Sunday. It was only in late October that Ishiba’s Liberal Democratic Party lost the majority in the lower house it had held since 2012.

Japanese PM Ishiba's coalition lost its upper house majority, compounding earlier lower house losses. The right-wing Sanseito party gained traction with its

Japan's upper house election on Sunday dealt a big blow to the ruling coalition and sets markets up for possible policy paralysis and a bigger fiscal deficit, much of which is already priced in, analysts said.