Koizumi's governing Liberal-Democratic Party won 49 of the 121 seats at stake -- down from 50 and two short of its target.

The opposition Democratic Party of Japan, bolstered by discontent with Koizumi's deployment of troops to Iraq and a new law cutting pension benefits, boosted its standing in the chamber by 12 seats to 50.

The embattled prime minister, who took office in April 2001 promising far-reaching reform, insisted there was no reason for him to resign to take responsibility for the results. But the DPJ claimed victory.

"The people have issued a resounding 'no' to Koizumi's policies," said party leader Katsuya Okada.

The election had not been expected to seriously threaten the LDP's hold on government. The party, which has governed almost uninterruptedly since 1955, holds a firm majority in the powerful Lower House.

The Japan Times Weekly: July 17, 2004
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