Japan PM headed for comfortable election win

Japanese Prime Minister Junichiro Koizumi's ruling coalition looks set to win a solid majority in tomorrow's general election, polls showed yesterday as an approving Tokyo stock market closed at a four-year high on record turnover.

The Asahi newspaper said its poll of closely fought districts indicated Koizumi's Liberal Democratic Party (LDP) would win at least 241 seats in Parliament's 480-seat lower house, giving it a majority on its own for the first time since 1990 and handing the two-party ruling bloc a firm grip on power.

The Asahi and three other newspaper surveys also showed the LDP doing well among uncommitted and urban voters who had leaned towards the opposition Democratic Party in recent elections.

The maverick, wavy-haired Mr Koizumi, 63, called the snap election after LDP rebels helped the opposition to defeat bills to privatise the postal system, a financial services giant with $3 trillion in assets that has often been criticised for funding wasteful public works projects.

His decision to stake his political career on privatising Japan Post and to send high-profile candidates dubbed "assassins" by local media to challenge the LDP "traitors" has played well with many voters.

"I'm voting for the LDP because I'm in favour of postal reform," said Kaori Hagino, 26, who works for a foreign financial firm and said she had never voted for the ruling party before.

"Koizumi is quite aggressive. I've liked him for a really long time. It's because he speaks his thoughts quite clearly - there aren't that many people in Japan who are like that."

Investors in Japanese financial markets have been cheered by forecasts of victory for the LDP and its junior coalition partner, the Buddhist-backed New Komeito party.

The Nikkei share average has risen about 10 per cent since the election was called on August 8, mainly on buying by foreigners encouraged by upbeat economic data and the promise of reform.

With the Democrats also preaching reform, analysts say policies won't reverse course no matter who wins.

The LDP had 249 seats and the New Komeito 34 before the lower house was dissolved, against 175 for the Democrats. However, the LDP refused to put 37 rebels on the party slate.