Prime Minister Shigeru Ishiba's recent remark signaling opposition to interest rate hikes by the Bank of Japan has taken the financial market by surprise, as he had been viewed as a proponent of rate hikes.

Japan's new Prime Minister Shigeru Ishiba opened his first policy speech in office Friday by setting five pillars “to defend” his country, including security, economy and disaster resilience.

Japan's parliament formally elected Shigeru Ishiba as the country's prime minister to replace Fumio Kishida, whose administration was rocked by scandals.