(Agencies)
Updated: 2007-09-25 14:37

Tokyo - Yasuo Fukuda, who has promised to bring stability and moderation to Japan's tumultuous political scene, was elected prime minister by the lower house of parliament Tuesday.

Newly elected President of the Liberal Democratic Party Yasuo Fukuda gives a press conference in Tokyo, September 23, 2007. He was elected prime minister by the lower house of parliament Tuesday. [AFP]

The vote guaranteed Fukuda's installment as Japan's next leader. The upper house, dominated by the opposition, was to vote later in the day, but the lower house vote will hold sway under legislation rules.

Fukuda, 71, the first son of a prime minister to also serve in the post, has pledged to keep Japan as a strong US ally in the fight against terrorism, improve relations with Asia, and address growing inequalities in the world's second-largest economy.

Japanese Prime Minister Shinzo Abe and his Cabinet resigned Tuesday, clearing the way for new ruling party leader Yasuo Fukuda to be named by parliament as his successor later in the day.

Abe, who stunned the nation when he announced September 12 that he wanted to quit, emerged Tuesday from the hospital where was being treated for stress-related stomach ailments to officially dissolve his Cabinet.

"I want to extend my apologies to the people for not being able to complete my duties," Abe said in a statement that outgoing top government spokesman Kaoru Yosano read to reporters following the Cabinet's final meeting.

Abe, 53, had faced harsh criticism for abruptly resigning amid a parliamentary battle over the extension of the country's naval mission in the Indian Ocean to support international troops in Afghanistan. On Monday he said that he had resigned for unspecified health reasons.

Fukuda, a party elder who served as chief Cabinet secretary in 2000-04, has been seen as a symbol of stability after the Abe administration.

Education Minister Bunmei Ibuki, 69, was named the party's secretary-general; former Finance Minister Sadakazu Tanigaki, 62, the party's policy chief; and former Trade Minister Toshihiro Nikai, 68, chairman of the party's General Council.

The new LDP leadership faces daunting challenges. With its reputation in tatters and the upper house of parliament dominated by the opposition following an electoral setback in July, calls are growing for snap elections that could endanger the LDP's grip on the lower house.

Though initially popular, Abe saw his approval ratings had sagged to about 30 percent at the end of his scandal-plagued term. Four Cabinet ministers resigned in money-related scandals, and an agriculture minister committed suicide in May.

Fukuda's first order of business will be pushing the extension of the Indian Ocean mission through parliament, where the opposition has vowed to defeat it.

Japanese tankers have been refueling coalition ships in the Indian Ocean since 2001, and the US --- Tokyo's top ally and protecter --- has been pushing for an extension of the operation.