Japan’s parliament formally elected Shigeru Ishiba, head of the governing Liberal Democratic Party, as the country’s new prime minister.

Stocks dropped after Japan’s governing party chose Shigeru Ishiba, a critic of the country’s longstanding ultralow interest rates, as its leader.

Japan finds out its next leader on Friday when the ruling party of outgoing Prime Minister Fumio Kishida picks his replacement in a key vote that could affect the country’s political stability in coming months.