Japan began searching for a new prime minister today after Yasuo Fukuda became the second leader to abruptly resign in less than a year, threatening a further policy vacuum as the economy teeters on the brink of
recession.
The frontrunner to become the 11th prime minister in 15 years is former foreign minister Taro Aso (67), an outspoken nationalist popular with voters who was runner-up to Mr Fukuda in the Liberal Democratic Party (LDP) leadership race last year.
Markets took the sudden departure of Mr Fukuda in their stride. Both the Nikkei stock average and government bond futures rose after initial wobbles, although analysts said Aso might try to spend Japan's way out of its economic woes.
Mr Aso said he thought he was a suitable candidate in a party vote, which Kyodo news agency said was expected on September 22nd.
"I think (Fukuda) felt he had work that was left undone, and he said he wanted it to be carried out," he told a news conference. "As someone who discussed these issues with him, including the economic package, I think I have the credentials to take that on."
Mr Aso is currently secretary-general in the ruling LDP.
Mr Fukuda (72), had been struggling to cope with a divided parliament where opposition parties have the power to delay legislation, and his sudden exit raised questions about his conservative party's ability to cling to power or even hold together after ruling Japan for most of the past 53 years.
Mr Fukuda, a moderate conservative who favours close ties with Japan's Asian neighbours, only took office last September after his predecessor, Shinzo Abe, similarly quit after just a year in office.
His resignation does not automatically mean an early election, ahead of the due date of September next year.
However, whoever the LDP picks as its leader, and thus the next prime minister, might choose an early poll to take advantage of any rise in public support. A complete deadlock in parliament could also force the prime minister to call an election reluctantly.
The ruling coalition is almost certain to lose seats, if not its majority.
Reuters