Kan named as Japan's prime minister

Japan's lower house has elected Naoto Kan as the new prime minister, handing the outspoken, grass-roots populist the task of quickly reclaiming public support lost by his predecessor, ahead of July elections.

"My task is to rebuild this nation," Mr Kan said after he was chosen ruling party chief. Pledging to confront problems linking "money and politics", he also stressed the need to spur economic growth.

Mr Kan, 63, was finance minister under the unpopular Yukio Hatoyama, who stepped down on Wednesday amid plunging approval ratings over broken campaign promises and a political funding scandal.

As prime minister, Mr Kan faces daunting choices in how to lead the world's second-largest economy, which is burdened with massive public debt, sluggish growth and an ageing, shrinking population. He must also rally voter support ahead of upper house elections next month.

Mr Kan, known for standing up to Japan's powerful bureaucrats, is the country's sixth prime minister in four years.

"We will work together as one in the face of the tough political situation and the upcoming upper house election and fight together unified," he said after the party vote. "Our first priority is to regain the trust of the people."

The path to the parliamentary vote began when Mr Hatoyama's cabinet resigned en masse. Then the ruling Democratic Party of Japan voted Mr Kan as its new leader. The lower house convened hours later to approve him as prime minister. Mr Kan received 313 votes out of 477, with Liberal Democratic Party head Sadakazu Tanigaki getting 116. The rest went to candidates from smaller parties.

On foreign policy, Kan described the relationship with the US as vital, but stressed the importance of Japan's ties with regional neighbours.

"With the US-Japan alliance the cornerstone of our diplomacy, we must also work for the prosperity of the Asian region," he said ahead of the ruling party vote.

In that contest, Mr Kan defeated little-known Shinji Tarutoko, chairman of the lower house environmental committee, by a vote of 291-129, with two invalid ballots. Afterwards, the two shook hands and raised their hands together.