Japanese PM resigns ahead of next month's election

Japanese Prime Minister Yukio Hatoyama has said he and his number two will step down from power after his party suffered a slide in the polls which could threaten its chances in an election expected next month.

Some members of the Democratic Party have called for Mr Hatoyama to step down to revive the party's fortunes ahead of an election for the upper house of parliament which is expected to take place on July 11. The party needs to win that election in order to smooth policymaking.

Mr Hatoyama addressed party members and the press with teary eyes and said both he and his party secretary-general Ichiro Ozawa would resign their posts.

Mr Hatoyama said: "I too will be resigning from my current position, but also so will be Secretary General (Ichiro) Ozawa, as is commonly known to have been in the midst of the debate over political funding laws."

Political analysts said that unless Mr Ozawa also quit, any boost in popularity was likely to be limited at best, following voter suspicions over his alleged involvement in a funding scandal.