Japan’s Rice Minister Koizumi Says Will Join Leadership Race

(Bloomberg) — Japan’s Agriculture Minister Shinjiro Koizumi, a reform proponent, says he will run in the ruling party leadership race as the Liberal Democratic Party looks for a successor capable of turning around its prospects and leading the nation.

“It’s true that I told my supporters of my intentions,” Koizumi told reporters at his regular press conference on Tuesday, referring to a meeting at the weekend at which he informed local party supporters of his plans to enter the leadership election. “I will put together my campaign step by step as I head toward a formal declaration.”

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Koizumi’s entry into the LDP leadership race follows announcements by former Foreign Minister Toshimitsu Motegi and young right-winger Takayuki Kobayashi, who is due to give a press conference later Tuesday. Former Internal Affairs Minister Sanae Takaichi and Chief Cabinet Secretary Yoshimasa Hayashi are also expected to enter the race in the coming days.

Koizumi will likely be seen as a candidate who can bring generational change to the party. The 44-year old has previously bid to become leader, campaigning on a platform of reform. He showed his reformist streak as agriculture minister with his efforts to bring rice prices down and promote large-scale farming, even at the cost of angering farmers and rural voters.

Koizumi and Takaichi are seen as the likely front-runners in the leadership election.

Previously Takaichi has criticized Bank of Japan moves to raise interest rates and is seen by some market players as a potential leader who might advocate a slowing down of the central bank’s rate hikes. Koizumi is seen less likely to try to influence the BOJ’s interest rate path.

The yen strengthened against the dollar Monday morning. Analysts cited a number of factors that may have contributed to the move with some of them including the entry of Koizumi into the leadership race among them.

A Kyodo public poll released Friday showed Takaichi as the most popular choice among respondents, though the decision won’t be made by the general public. The LDP election will be decided by parliamentarians and the party’s million or so members. The poll showed Takaichi’s support at 28%, with Koizumi at 23% and Hayashi in third place at 11%.

Following Koizumi’s remarks, Finance Minister Katsunobu Kato threw his support behind the farm minister, ending consideration of his own bid. Kato came a distant ninth in the first round of LDP voting in last year’s leadership election.