Lawmakers in Japan prepared their bids to replace outgoing premier Shigeru Ishiba, as markets recoiled on the political uncertainty.

Japanese Prime Minister Shigeru Ishiba announced his resignation Sunday to avoid a split of his Liberal Democratic Party after recent election defeats.

Japan's Prime Minister Shigeru Ishiba announced Sunday he will step down following growing calls from his party to take responsibility for a historic defeat in July's parliamentary election.

The jockeying for a new prime minister has begun as outgoing Prime Minister Shigeru Ishiba's beleaguered long-governing Liberal Democratic Party struggles to stay in power.

The process to pick Japan's next leader is more complicated than before as Ishiba's Liberal Democratic Party, which has ruled Japan for most of the post-war period, and its junior coalition partner lost their majorities in both houses of parliament during his tenure.

Former Japanese Foreign Minister Toshimitsu Motegi said on Monday he would run in the race to decide the next head of the Liberal Democratic Party after the premier announced his resignation.