Another Japanese PM resigns

TOKYO — Prime Minister Yasuo Fukuda announced Monday night he would resign, abruptly ending his unpopular government after just a year and leaving Japan's governing party scrambling to find fresh leadership ahead of crucial national elections.

Fukuda's surprise announcement, made at a hastily called news conference, stunned Japan and appeared to plunge the world's second-largest economy into further political confusion. It marks the second time in two years that a deeply unpopular, politically stymied and seemingly directionless Japanese leader has called it quits after serving less than 12 months in office. Fukuda's predecessor, Shinzo Abe, resigned last September.

The resignation announcement came a month after Fukuda installed his most widely expected successor, former Foreign Minister Taro Aso, as secretary general of the Liberal Democratic Party, in a Cabinet shake-up aimed at boosting support for the government.

Right-leaning Aso said Tuesday he was "qualified" to take over as prime minister, signaling he would run for the post.

Fukuda's resignation came just days after he unveiled a $17 billion economic-stimulus package in an effort to revive Japan's floundering economy. Inflation has risen this year to the highest level in a decade, and the economy shrank in the second quarter by 2.4 percent, the largest decline in more than six years.

Still, there had been widespread speculation that Fukuda, suffering from low ratings, might resign before the national elections, to give the party a chance to install a more popular new leader.

The Liberal Democrats will convene to select their new leader. Because they control the lower house of parliament, which chooses the prime minister, their selection will automatically acquire the post.

The selection process is expected to take about two weeks, during which time Fukuda, 72, will remain in office.

Information from The Associated Press is included in this story.