Ishiba, 67, garnered 221 votes against opposition leader Yoshihiko Noda's 160 in the second round of voting at the House of Representatives on Monday, marking the first such runoff in 30 years after no candidate achieved a majority in the initial ballot.
The reelection comes in the wake of the ruling coalition's setback in the Oct. 27 election, where it lost its commanding majority in the 465-seat lower chamber, forcing the Liberal Democratic Party (LDP) to seek broader parliamentary cooperation.
"The current political situation may be good for democracy in a sense," Ishiba said at a news conference, emphasizing the importance of cross-party dialogue in policy discussions.
The prime minister maintained most of his cabinet positions, including key portfolios in foreign affairs, defense and finance, while facing immediate challenges including surging living costs, regional security threats and the pressing need for political funding reform before year-end.
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