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

Japanese Prime Minister Shigeru Ishiba said Monday he will stay in office to tackle challenges such as rising prices and high U.S. tariffs after a weekend election defeat left his coalition with a minority in both parliamentary chambers.

Having already lost its majority in Japan's more powerful lower house last year, the defeat will undermine the coalition's influence. The ruling coalition needed 50 seats to retain control of the 248-seat upper chamber.

The yen carry trade that crashed and burned last year may end up being one of the biggest beneficiaries of Japan’s seismic election result.

Prime Minister Ishiba Shigeru and his Liberal Democratic Party were projected to lose their majority coalition government in Japan's Upper House of Parliament on Monday.