Japan's embattled prime minister Shigeru Ishiba, fresh off a crushing defeat in upper house elections over the weekend, will not be in a position of strength to negotiate a favorable trade deal with the U.S., analysts said.

Ishiba said the coalition's poor showing was because his government’s measures to combat price increases had yet to reach many people.View on euronews

Global hedge funds offloaded Japanese equities at the sharpest pace in almost two-and-a-half months last week, just ahead of the country's upper house election on Sunday, Goldman Sachs said in a note.