Japan's PM resigns

He called a news conference to declare he is qualified to succeed Yasuo Fukuda, who has abruptly resigned from the position.

Mr Aso, says he thinks Mr Fukuda felt he had work that was left undone, and he wanted it to be carried out.

He says he has the right credentials to continue this work including implementing an economic package developed by the previous prime minister.

Mr Fukuda became the second leader to resign in less than a year, threatening a further policy vacuum as the economy teeters on the brink of recession.

The resignation doesn't automatically mean and early election.

However, whoever the LDP picks as its leader, and thus the next prime minister, might chose an early poll to take advantage of any rise in public support.

Mr Fukuda says his term has been beset with challenges, including a parliamentary blockade orchestrated by the opposition, which controls parliament's upper house.

He says a new leader stands a better chance of making headway with the government's policy agenda.