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Monday, 31 August 2009 - Japan Democrats take power, tough challenges loom | International |
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    Read more with google mobile : Japan Democrats take power, tough challenges loom | International |

    My Profile    Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Japan Democrats take power, tough challenges loom Mon Aug 31, 2009 3:07am EDT   Email | Print | Share | Reprints | Single Page [-] Text [+] By Isabel Reynolds TOKYO (Reuters) - Japan's next leader, Yukio Hatoyama, began talks on Monday on forming a government to tackle challenges such as record unemployment and a fast-aging society after voters gave his party a sweeping mandate for change. Sunday's historic election win by the Democratic Party of Japan (DPJ) breaks a deadlock in parliament and will usher in a government that has promised to focus spending on consumers, cut wasteful budget outlays and reduce the power of bureaucrats. The defeated Liberal Democratic Party (LDP), which had ruled Japan for most of the last half-century, was left to lick its wounds after suffering its worst election performance since the party was founded in 1955. "It's taken a long time, but we have at last reached the starting line," Hatoyama told a news conference at his home in Tokyo on Monday. "This is by no means the destination. At long last we are able to move politics, to create a new kind of politics that will fulfill the expectations of the people." Hatoyama is to set up a transition team to organize the change of government, but has said he will not announce his cabinet until he is officially elected prime minister by a special session of parliament, probably in about two weeks. Investors welcomed the end to a political deadlock that has stymied policies as Japan struggled with its worst recession since World War Two. The Democrats and its small allies won control of the upper house in 2007 and were able to delay bills. The yen rose to a 7-week high, buoyed by the end of electoral uncertainty. The Nikkei share average edged lower after hitting a near 11-month high as the stronger yen sent shares of exporters lower. Media forecasts show the Democrats won about 308 seats in the lower house, nearly tripling their strength in the 480-member chamber. The LDP won only 119 seats, down from 300. "The problem is how much the Democrats can truly deliver in the first 100 days. If they can come up with a cabinet line-up swiftly, that will ease market concerns over their ability to govern," said Koichi Haji, chief economist at NLI Research Institute. For a graphic showing the change in lower house seats, click: r.reuters.com/cer83d SPENDING WORRIES Despite the Democratic Party's landslide win, many voters and analysts said the victory was driven more by frustration with the LDP than broad support for the decade-old opposition. "It's not that the Democrats were good. I voted for them as a punishment for the LDP. The LDP has to change," said Etsuji Inuzuka, 47, who works in the furniture business. The untested Democrats, who will face an upper house election in less than a year, will have to move quickly to keep support among voters worried about a record jobless rate and a rapidly aging population that is inflating social security costs. Japan is aging more quickly than any other rich country. More than a quarter of Japanese will be 65 or older by 2015.  Continued... View article on single page   Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn     Next Article: JGB futures rise as Nikkei falls from 11-mth high     Special Coverage: The Drug War Home-grown addicts Drug gangs in Guatemala are paying runners and hitmen with cocaine, driving a growing local market and leaving a trail of addicts in a country already wracked by poverty and crime.  Full Article | Full Coverage  More International News Serious fraud complaints double in Afghan vote Dalai Lama tells Taiwan he's dedicated to democracy Suspected Taliban torch NATO supplies in SW Pakistan Myanmar refugees wary of returning from China   |  Video Gabon awaits poll outcome, Bongo's son confident More International News... Video Japanese elect a new leadership Play Video DPJ tipped to win in Japanese vote More Video... Related News Japan Democrats' win may buoy Nikkei, dent JGBs 3:07am EDT Next Japan PM talks of "fraternity" and love 12:48am EDT Japan opposition DPJ win to break policy deadlock 30 Aug 2009 Possible Democratic Party of Japan finance ministers 30 Aug 2009 Q+A: Japan opposition seeks to curb bureaucrats' clout 30 Aug 2009 FACTBOX: Japan opposition's election campaign platform 30 Aug 2009 FACTBOX: Policy challenges facing Japan's new government 30 Aug 2009 Q+A: Japan PM-elect may ruffle U.S. on security issues 3:07am EDT Editor's Choice Slideshow  A selection of our best photos from the past 24 hours.  Slideshow  Most Popular on Reuters Articles Video New flu hit estimated 10 percent of New Yorkers UPDATE 2-Los Angeles wildfire forces thousands from homes Capitalism the villain as Moore movie hits Venice Two firefighters die in growing LA wildfire  |  Video UPDATE 4-Two firefighters die in growing LA wildfire No need for second U.S. fiscal stimulus package: survey Japan Democrats take power, tough challenges loom  |  Video Japan Democrats take power, tough challenges loom  |  Video Space shuttle reaches space station for 9-day stay "Zombie suppliers" haunt manufacturing sector Most Popular Articles RSS Feed Video  U.S.Fires threaten 10,000 homes Vital road link for Afghanistan Japanese elect a new leadership Missing pilots' remains head home Thousands stranded on Chinese border Cameroon train crash drama China hit by deadly floods Suicide bomber kills 12 in Pakistan DPJ tipped to win in Japanese vote More attacks strike near Baghdad Most Popular Videos RSS Feed Reuters.com:  Help and Contact Us  |  Advertise With Us  |  Mobile  |  Newsletters  |  RSS  |  Labs  |  Journalism Handbook  |  Archive  |  Site Index  |  Video Index Thomson Reuters Corporate:  Copyright  |  Disclaimer  |  Privacy  |  Professional Products  |  Professional Products Support  |  About Thomson Reuters  |  Careers   International Editions: Africa  |  Arabic  |  Argentina  |  Brazil  |  Canada  |  China  |  France  |  Germany  |  India  |  Italy  |  Japan  |  Latin America  |  Mexico  |  Russia  |  Spain  |  United Kingdom  |  United States   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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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