Japan’s incoming prime minister, Shigeru Ishiba, said yesterday he will call a general election for October 27 following his victory in one of the closest ever leadership races for the ruling Liberal Democratic Party.

Shigeru Ishida had beaten Economic Security Minister Sanae Takaichi in the final round of the Liberal Democratic Party election on Friday.

Japan’s Nikkei 225 index tumbled by more than 4% on Monday, driven by a combination of underwhelming industrial production figures and the market’s reaction to the election of new Prime Minister Shigeru Ishiba.