TOKYO—Japan’s ruling coalition suffered a significant loss in a parliamentary election Sunday, a setback that risks derailing delicate trade negotiations with the U.S. just weeks before punishing tariffs are set to take effect.

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.

The Japanese government said it is responding to "crimes and nuisances committed by some foreigners and inappropriate use of various systems."

Good morning. Shigeru Ishiba says he’ll stay put—despite a historic election setback. Some investors worry that disappointing earnings or economic data may derail the S&P 500’s red-hot rally. And Astronomer CEO Andy Byron steps down after the now-infamous Coldplay concert incident.

With his calls to limit foreign workers, fight globalism and put “Japanese First,” Sohei Kamiya has brought a fiery right-wing populism to Japan’s election on Sunday.

From chilled ramen to flowing noodles caught with chopsticks, these regional specialties blend flavour, fun and centuries of heat-beating wisdom.

Shigeru Ishiba is clinging on to power after the latest rebuke from the electorate. With crucial trade talks on the line, it’s time for him to go.

The ruling LDP coalition may lose its upper house majority.