Heading into the most consequential Japanese upper house election in memory and a possible defeat for the coalition of Prime Minister Shigeru Ishiba, investors are weighing whether a record sell-off in the nation's debt has further to run.

The dollar remained stable on Tuesday as investors focused on trade negotiations before the August 1 tariffs deadline, while the yen showed slight fluctuations following Japan's upper house election.

While foreign nationals do not have the right to vote unless they naturalize, as residents they contribute to the economy, pay taxes and raise families in Japan. As electoral results could impact their lives, The Japan Times asked several foreign residents to weigh in. Interviews have been edited for brevity and clarity.

Japan's top tariff negotiator Ryosei Akazawa will visit Washington from Monday for an eighth round of trade talks, with the deadline

Japanese Prime Minister Shigeru Ishiba on Monday apologized to the ruling Liberal Democratic Party (LDP) for the election loss, adding that he will continue to govern in coalition with Komeito.

“It’s possible Japan might experience its own triple whammy of market turmoil, perhaps a Japanese version of the ‘Trump crisis’ that occurred in April,” said Hideo Kumano, an economist at Dai-Ichi Life Research Institute, referring to a simultaneous fall of stocks, currencies and bonds.

Asian shares and the yen held their ground on Monday as Japanese elections proved bad for the government but no worse than already priced in, while Wall Street futures braced for earnings from the first of the tech giants.

Japan's shaky minority government is poised for another setback in an upper house vote on Sunday, an outcome that could jolt investor confidence in the world's fourth largest economy and complicate tariff talks with the United States.

Nicholas Smith of CLSA discusses the upcoming Japanese upper house election, saying it will have little impact on markets. He adds that despite the unpopularity of the ruling LDP party, there is a lack of a credible opposition.

The analyst said the elections are unlikely to impact the U.S.-Japan defense alliance and that China, North Korea and Russia are expected to remain long-term strategic priorities.

Opinion polls suggest Ishiba’s Liberal Democratic Party may fall short of a majority in Upper House elections.