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

Stocks in Japan fell sharply on Monday after the country’s governing party chose a leader some view as hawkish on interest rates, underlining how central bank decisions continue to set the course of the world’s fourth-largest economy after decades of easy money policy.

The person chosen to lead Japan’s governing party, and become prime minister next week, is a veteran politician with deep policy experience, a taste for curry and anime — and big challenges ahead of h