Upper house defeat for Japan government

Japanese Prime Minister Shinzo Abe's ruling party suffered a crushing defeat in the country's elections on Sunday.

But the 52-year-old leader insisted he would stay in his job despite the blow.

"I am determined to carry out my promises although the situation is severe," Abe said.

He added: "We need to restore the people's trust in the country and the government."

Political analysts have predicted that the leader will come under pressure to step down after his second-in-command resigned.

The election stripped Abe's coalition of its upper house majority in his first big electoral test since taking office 10 months ago.

Abe's coalition will not be ousted from government by the loss, as it maintains a huge majority in the more powerful lower chamber, but it has been reported that he may reshuffle his cabinet.

Without a ruling bloc majority, Abe will find it difficult to pass laws.

That could lead to policy paralysis.

© Independent Television News Limited 2007. All rights reserved.