Prime Minister Shinzo Abe has resigned after barely a year in power.
Poor recent election results in July which lead to the loss of the LDP's majority in the upper house and a series of financial scandals surrounding Abe's cabinet has lead to a loss of public support.
Abe, at 52, was the youngest post-war Prime Minister and an avowed nationalist. His catchphrase of making Japan "a beautiful country" failed to go down with voters more concerned with the issues of missing pension funds and the growing income gap in the country.
LDP leaders will meet September 19 to pick a new party leader who automatically becomes Prime Minister.
Another hawk, LDP secretary-general, Taro Aso or more the more moderate Yasuo Fukuda are the favorites to succeed the hapless Abe.
Shares fell slightly on the Nikkei, Japan's stock market, on the news.
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Wednesday, September 12, 2007