2010-07-29 16:25

TOKYO - Japanese Prime Minister Naoto Kan apologised to his ruling party on Thursday for a stinging loss in this month's upper house election, and promised to do his best to make a fresh start, implying he intends to stay in his job.

Kan's Democratic Party of Japan (DPJ) and its tiny ally lost their upper house majority in a July 11 election after Kan, who has made fiscal reform a priority, floated a possible doubling of the 5 percent sales tax to rein in the country's massive public debt.

The Democrats will hold a party leadership election in early September and speculation is simmering that Kan may face a challenge.