Yoshihiko Noda set to become Japanese PM

A nationally televised vote involving nearly 400 MPs from the Democratic party of Japan (DPJ) was held on Monday after Kan honoured a promise to step down last Friday following the passage of key bills to fund post-tsunami reconstruction and support renewable energy.

Noda was declared the winner after defeating his nearest rival, the trade minister, Banri Kaieda, by 215 votes to 177 in a runoff held after none of the original five candidates won more than 50% of votes in the first round.

Noda, 54, will be faced with a long list of policy headaches once the DPJ has used its majority in the lower house on Tuesday to formally elect him prime minister.

The nuclear crisis is far from being resolved and tens of thousands of people living along the devastated north-east coast have yet to be permanently rehoused.

Japan has so far failed to stem the rise of the yen or agree on how to fund soaring health and social security costs in one of the world's fastest-ageing societies.

Noda's victory raised the prospect of a tax increase to pay for reconstruction from the earthquake and tsunami, which is projected to cost almost 20tn yen over five years.