Japan's PM survives challenge

Japanese prime minister Naoto Kan was re-elected president of the ruling Democratic Party yesterday, surviving a challenge from a veteran powerbroker and sparing Japan another leadership change as it deals with a sluggish economy.

Mr Kan, in office just three months, defeated party heavyweight Ichiro Ozawa by an unexpectedly wide margin, 721-491. Had Mr Ozawa won, he would have been Japan's third prime minister in a year.

The leadership dispute now settled, Mr Kan and his cabinet should be able to focus on tackling a host of problems confronting Japan, from economic malaise and a surging yen, to an escalating spat with China over a collision near disputed islands.

But Mr Kan still faces obstacles in parliament, where the Democrats and their junior coalition partner lost their majority in the upper house in July elections. That will make it tough to get legislation passed.

"The battle is now going to turn to parliament," said Naoto Nonaka, a political science professor at Gakushuin University in Tokyo.

After the vote, Mr Kan told fellow party members: "Japan is in serious difficulty. We must rebuild Japan again in order to hand it to the next generation, and I will stake my life to do the job and gain support from the people."