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Opposition parties have threatened to boycott parliamentary debate on an extra budget to prop up the economy if the ruling Democratic Party dodges questions about the scandal ensnaring its secretary-general, Ichiro Ozawa.
That could delay passage of the extra budget, sparking concerns about the weak economy, although the ruling party has a clear majority in the lower house.
Support for Hatoyama's cabinet, which had already slid since he took office four months ago due to voters' doubts about his leadership, fell to 42 percent in an Asahi newspaper poll from 48 percent the previous month. That was down from initial highs above 70 percent after Hatoyama took power last September.
A Yomiuri newspaper survey showed a steeper drop to 45 percent from 56 percent earlier this month.
Prosecutors have arrested three current and former Ozawa aides on suspicion of improper reporting of political donations.
Japanese media say they are probing the source of funds and suspect construction firms seeking government contracts were involved.
Hatoyama said on Saturday he would back Ozawa's decision to stay on in his key post and urged him to fight on.
That stance has drawn fire from Japanese media and the opposition as suggesting bias against the prosecutors, but the premier repeated his position and called for the party unity at the start of a regular parliament session.
"I think it will be a very tough parliament (session) and this will be a test. I myself will also be given a great challenge but I would like to overcome this together with you," Hatoyama told a gathering of Democratic Party lawmakers.