Japan Elections: Change of Government Likely

Japanese Prime Minister Taro Aso's Cabinet dissolved parliament on Tuesday, paving the way for an August 30 election expected to lead the ruling party to historic defeat.

A Liberal Democratic Party loss to the opposition Democrats would end more than 50 years of almost unbroken rule by the business-friendly party but likely improve chances of resolving a policy deadlock caused by a divided parliament.

Surveys show Aso's LDP well behind the decade-old DPJ, with the worst economy since World War II and recent regional setbacks not seen bolstering chances.

The DPJ has pledged to focus more on consumers than corporations, which analysts see as potentially inflating public debt to pay for further economic stimulus.

The lower house vote will be the first since 2005, when then premier Junichiro Koizumi led the LDP to a landslide victory.

Some LDP members tried to put off the upcoming election, even angling to push out Aso for a more popular figure, but party heavyweights blocked the moves.

The 68-year-old Aso, grandson of a prime minister, has held office for less than a year, but has seen weak voter support fall even further.

Japanese share markets gained early Tuesday, which traders said was more from a Wall Street rise and hopes of a U.S. economic recovery than developments at home.

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