Prime Minister Yukio Hatoyama acknowledged that his party's political money scandals affected the Feb. 21 gubernatorial race in Nagasaki Prefecture, where the ruling Democratic Party of Japan-backed candidate lost.

Former Nagasaki Vice Gov. Hodo Nakamura won the Nagasaki gubernatorial election on Feb. 21. KYODO PHOTO

"It should be said that scandals on 'politics and money' influenced the outcome," Hatoyama told reporters Feb. 22.

Former Nagasaki Vice Gov. Hodo Nakamura, supported by the opposition Liberal Democratic Party and New Komeito, defeated DPJ-backed former bureaucrat Tsuyoshi Hashimoto and five others.

Nagasaki has been a stronghold for the DPJ in recent national polls, including last year's general election where newcomer Eriko Fukuda beat out LDP veteran Fumio Kyuma. But Nakamura, 59, crushed Hashimoto 316,603 to 222,565.

The result is a "huge blow" to the DPJ heading into the Upper House election in July, political analyst Minoru Morita said.

The outcome is widely seen as the public's response to the DPJ's money scandals, including Hatoyama's mismanagement of political funds given to him by his mother as well as a shady land buy by DPJ Secretary General Ichiro Ozawa.

"The winning streak for the DPJ is over, the favorable wind has stopped," Morita said, pointing out that Nakamura's wide margin of victory came despite the DPJ's recent winning streak in Nagasaki.

Morita said the public is clearly displeased with how Hatoyama and his administration are trying to handle the scandals, warning that regaining voter trust in time for July's Upper House election will be a tough task.