Shigeru Ishiba is set to be confirmed as Japan’s new prime minister on Tuesday, shifting the pressure of managing the nation onto the shoulders of a political idealist who has spent much of his long career offering critiques from the sidelines.

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.