Japanese Prime Minister Junichiro Koizumi vowed on Monday to keep troops in Iraq despite a setback in weekend elections seen as a verdict on his key policies.
Koizumi told a news conference that his ruling Liberal Democratic Party had a tough fight in Sunday's upper house elections as more than 60 percent of people opposed his administration's decision to keep Japanese troops in Iraq under a multinational force.
"Japan needs to continue activities which will be regarded as valued work there," said Koizumi.
"In line with a UN agreement, Japan wants to play a role as a member of the international community by providing both personnel support by the Self-Defence Forces and material support," the premier said.
Japan, one of Washington's staunchest backers over the Iraq war, has around 550 troops in the southern Iraqi city of Samawa providing post-war humanitarian assistance in its most controversial and risky mission since 1945.
Results from the weekend elections showed Koizumi's LDP won 49 of the 121 seats up for grabs, a loss of one seat. The main opposition democrats won 50 seats
The elections were regarded as an opportunity for the public to deliver a verdict on Koizumi's decision to keep troops in Iraq and other issues.
Koizumi also indicated he would reshuffle his cabinet in September but gave no clues to the changes.
Official results have not yet been published but media said Koizumi's LDP won only 49 of the 121 seats at stake in Sunday's poll, missing its modest target of holding on to 51.
In addition to the 49 seats won by the LDP, its junior coalition partner, the New Komeito, won 11 seats, giving the ruling coalition 139 of the 242 seats in the upper house. Half of the upper chamber's seats are contested every three years.
The main opposition Democrats, buoyed by voter dismay over pension reforms and the Iraq mission, made impressive gains, winning 50 of the seats contested, up from 38.
"I would like to firmly push forward reforms, viewing this as a voice from the public to make progress on reforms while paying heed to the views of the opposition," Koizumi said.
The poor showing could reduce the prime minister's clout within his party and cast a shadow over his economic reforms. But with no elections soon, Koizumi could still forge ahead, analysts said.
Koizumi, 62, sprang to power in 2001 on a groundswell of popular support for his promise to abandon the wasteful public spending that had inflated Japan's government debt and to privatise debt-laden public corporations and postal services.
Economists say Koizumi's record is patchy and his support has fallen to half of the 80 percent of three years ago when he led the LDP to a solid showing in a previous upper house election.
The Democrats had criticised Koizumi's record on reform as well as unpopular changes to the creaking state pension scheme and the dispatch of troops to Iraq.
Democratic Party leader Katsuya Okada vowed to cash in on voter anger to set the stage for his party to win in the next general election, which must be held by late 2007.
"We were able to take an important step towards firmly taking power in the next election," Okada told NHK public television.
Japanese stocks rose sharply, with the benchmark Nikkei average gaining 1.39 percent to close at 11,582.28.
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