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Weakened Koizumi suffers poll setback but keeps job

TOKYO, Monday (Reuters) Japanese Prime Minister Junichiro Koizumi's party suffered an embarrassing setback in a weekend upper house election that allows him to keep his job but weakens his ability to forge ahead with economic reforms.

Official results have not yet been published but media said on Monday that Koizumi's Liberal Democratic Party (LDP) won only 49 of the 121 seats at stake in Sunday's poll, missing its modest target of 51.

Koizumi's ruling coalition retained its majority in the upper house and holds a majority in the more powerful lower chamber, which chooses the prime minister, so his job seems safe.

But the main opposition Democrats, buoyed by voter dismay over pension reforms and Japan's troop dispatch to Iraq, made impressive gains, winning 50 of the seats contested, up from 38 before the poll. Media said on Monday that the poor showing would reduce the once wildly popular prime minister's clout within his party and could cast a shadow over his economic reforms.

"Resistance toward Koizumi's reforms is likely to increase ... Pressure from opposition parties will no doubt strengthen as well. Against this harsh environment, will it be possible to make the reforms into something fruitful?" the Asahi Shimbun daily said in an editorial.

The fact that the LDP struggled despite stressing the merits of Koizumi's economic reforms - such as reining in public spending - may bode ill for such policies, the Mainichi Shimbun daily said.

"There is a possibility that calls for ... public works to be increased could re-emerge within the LDP," it said.

The junior coalition partner, the New Komeito, won 11 seats, which meant the ruling coalition had 139 of the 242 seats in the upper house. The main opposition Democratic Party outperformed the long-ruling conservative party and boosted its presence, winning 50 seats. It previously held 38 of the seats contested.

Media reports said that although the weak LDP showing would undermine the maverick Koizumi's influence inside his party, there were virtually no calls for him to step down due to a lack of viable alternatives.

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