12 Jul 2010

DJP likely to lose control of Japan's upper house

10:14 pm on 12 July 2010

The Japanese prime minister is facing an election disaster as forecasts show he lost control of the upper house of parliament in Sunday's election.

The result could thwart efforts to curb a huge public debt and get the economy in shape.

Prime Minister Naoto Kan, who became party leader only last month, has reportedly said he will not resign.

Voters gave the Democratic Party of Japan a strong rebuke, depriving it and a tiny ally of an upper house majority less than a year after the DPJ swept to power promising change, Reuters reports.

The Democrats were struggling to end decades of stagnation in the world's second biggest economy and to cut the massive public debt.

The DPJ won just 44 seats and its partner, the People's New Party, got none.

The main opposition Liberal Democratic Party won 51 seats.