Outlook grim for Japanese PM

TOKYO - Japan's unpopular Prime Minister Naoto Kan refused on Monday to step down after the resignation of his foreign minister over a political funding scandal that has added to pressure on him to quit or call a snap election. But it is far from clear how Kan, if he does manage to cling to office, will be able to resolve the political stalemate that has left the government struggling to implement policies to cut into a huge public debt and win approval from a divided parliament to enact a new budget from April.

"Carrying out the administration's duty for the four-year term and then letting the people decide at the ballot box is best for the people themselves," he told a parliamentary session.

"I intend to firmly fulfill my duty until that time comes." But some analysts warned that Kan's government may well collapse sooner rather than later. He is Japan's fifth leader since 2006 and has no clear successor in sight.