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Slideshow Daredevil Santa Santa Claus, aka Hector Chacon, rappels down from the Belize bridge to give toys to children living in the area underneath. Slideshow Sponsored Links Japan's Abe gets second term, to tap allies for cabinet Tweet Share this Email Print Related News Japan's policy veteran Motegi likely to serve as trade minister: media Tue, Dec 25 2012 Dollar edges higher as U.S. fiscal talks eyed; yen drops Mon, Dec 24 2012 Under pressure from Abe, Bank of Japan boosts stimulus again Thu, Dec 20 2012 Bank of Japan to mull 2 percent inflation target as Abe turns up heat Tue, Dec 18 2012 Yen steadies after plunge in wake of Japan election Mon, Dec 17 2012 Analysis & Opinion Political risk must-reads In a year of big elections, Japanâ€™s was Godzilla Related Topics World » Japan » 1 of 6. Japan's incoming Prime Minister and the leader of Liberal Democratic Party (LDP) Shinzo Abe attends a news conference at the LDP headquarters in Tokyo December 25, 2012. Abe reiterated on Tuesday a pledge to revive the economy by correcting the recent trend towards a stronger yen. Abe is set to be selected as prime minister by lawmakers on Wednesday after leading his Liberal Democratic Party (LDP) to a landslide victory in a lower house election earlier this month. Credit: Reuters/Issei Kato By Linda Sieg and Kiyoshi Takenaka TOKYO | Wed Dec 26, 2012 1:00am EST TOKYO (Reuters) - The lower house of Japan's parliament approved Shinzo Abe as prime minister on Wednesday, giving the hawkish lawmaker a second chance at the top job as the country battles deflation and confronts a rising China. Abe, 58, has promised aggressive monetary easing by the Bank of Japan and big fiscal spending by the debt-laden government to slay deflation and weaken the yen to make Japanese exports more competitive. The grandson of a former prime minister, Abe has staged a stunning comeback five years after abruptly resigning as premier in the wake of a one-year term troubled partly by scandals in his cabinet and public outrage over lost pension records. His Liberal Democratic Party (LDP) surged back to power in this month's election, three years after a crushing defeat at the hands of the novice Democratic Party of Japan. "I want to learn from the experience of my previous administration, including the setbacks, and aim for a stable government," Abe told reporters before the lower house voted him in as Japan's seventh prime minister in six years. Abe looks set to pick a cabinet of close allies leavened by some LDP rivals to fend off the criticism of cronyism that dogged his first administration. The line-up will be announced around 0700 GMT. Japanese media have said Abe will name former prime minister Taro Aso, 72, as finance minister, ex-trade and industry minister Akira Amari as minister in charge of a new economic revival headquarters and policy veteran Toshimitsu Motegi as trade minister. Motegi will also be tasked with formulating energy policy in the aftermath of the Fukushima nuclear disaster last year. Loyal Abe backer Yoshihide Suga is expected to become chief cabinet secretary, a key post combining the job of top government spokesman with responsibility for coordinating among ministries. Others who share Abe's agenda to revise the pacifist constitution and rewrite Japan's wartime history with a less apologetic tone have also been floated for posts. "These are really LDP right-wingers and close friends of Abe," said Sophia University professor Koichi Nakano. "It really doesn't look very fresh at all." CHINA TIES, JULY ELECTION The yen has weakened about 9.8 percent against the dollar since Abe was elected LDP leader in September. On Wednesday, it hit a 20-month low of 85.38 yen against the greenback on expectations of aggressive monetary policy easing. Abe has threatened to revise a law guaranteeing the Bank of Japan's (BOJ) independence if it refuses to set a 2 percent inflation target. BOJ minutes released on Wednesday showed the central bank was already pondering policy options in November, concerned about looming risks to the economy. The BOJ stood pat at its November rate review meeting but eased this month in response to intensifying pressure from Abe. Abe also promised during the election campaign to take a tough stance in territorial rows with China and South Korea over separate chains of tiny islands, while placing priority on strengthening Japan's alliance with the United States. Japanese media said Abe would appoint two low-profile officials to the foreign and defense portfolios. Itsunori Onodera, 52, who was senior vice foreign minister in Abe's first cabinet, will become defense minister while Fumio Kishida, 55, a former state minister for issues related to Okinawa island - host to the bulk of U.S. forces in Japan - will be appointed to the top diplomatic post, the reports said. Abe, who hails from a wealthy political family, made his first overseas visit to China to repair chilly ties when he took office in 2006, but has said his first trip this time will be to the United States. He may, however, put contentious issues that could upset key trade partner China and fellow-U.S. ally South Korea on the backburner to concentrate on boosting the economy, now in its fourth recession since 2000, ahead of an election for parliament's upper house in July. The LDP and its small ally, the New Komeito party, won a two-thirds majority in the 480-seat lower house in the December 16 election. That allows the lower house to enact bills rejected by the upper house, where the LDP-led block lacks a majority. But the process is cumbersome, so the LDP is keen to win a majority in the upper house to end the parliamentary deadlock that has plagued successive governments since 2007. "The LDP is still under the critical eyes of the public. We need to earn their trust by get things done one by one," Abe told party lawmakers ahead of the lower house vote. "First on the agenda is economic recovery, beating deflation and correcting a firm yen and getting the economy back on the growth path. If we don't pursue this target, an upper house election next year will be a tough one for us." ($1 = 84.7950 Japanese yen) (Additional reporting by Leika Kihara, Kiyoshi Takenaka and Chris Meyers; Editing by Dean Yates) World Japan Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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