Japanese Prime Minister Naoto Kan on Friday stepped down as president of the ruling party, paving the way for the selection of the disaster-hit nation\'s sixth new premier in five years.
Kan\'s resignation comes after a turbulent 14 months in power during which he was criticised for his response to the March 11 earthquake, tsunami and resulting nuclear plant accident, which saw his approval ratings plummet.
"I propose to you that I resign as the leader of the Democratic Party of Japan today," Kan told party lawmakers Friday.
"Once a new leader is elected, I will resign promptly as prime minister and my cabinet will resign."
A leadership election for a new party president, who would then become prime minister, is expected on Monday. Parliament will then vote the leader in as premier on Tuesday.
A relaxed-looking Kan called on his colleagues to "rebuild" the DPJ and reflected on his time leading Japan during its worst post-war crisis. "I believe I did my best and did what I had to do in severe conditions," he said.
After surviving a no-confidence vote in June, Kan said he would quit on condition that three key bills were passed -- a second budget, a budget financing bill and legislation promoting the use of renewable energy.
The budget for reconstruction in quake-hit areas was approved in July, while the final two bills were passed Friday, clearing the way for him to depart.
At least five candidates are jockeying to succeed Kan, including the favourite, former foreign minister Seiji Maehara. Finance Minister Yoshihiko Noda officially threw his hat into the ring shortly after Kan\'s resignation.
The winner faces the unenviable task of overseeing Japan\'s biggest post-war reconstruction, resolving the world\'s worst nuclear crisis since Chernobyl 25 years ago, and shielding the economy from a soaring yen.
The new premier must also unite a divided parliament, decide on a new energy policy and win market confidence that Japan can overcome a legislative quagmire to address the world\'s biggest debt mountain.
Ratings agency Moody\'s this week downgraded Japan, citing its revolving-door political leadership as an obstacle to reform.
"The latest power change will yet again give the world the impression that Japan\'s leadership is unstable," said Shinichi Nishikawa, professor of politics at Meiji University in Tokyo.
Maehara, 49, who stepped down as foreign minister in March over a donations row, could become the nation\'s youngest post-war prime minister. He has advocated pursuing growth instead of raising taxes to ease Japan\'s fiscal woes.
Noda -- who recently courted controversy with statements supporting war criminals -- has softened his earlier stance on hiking taxes.
Between candidates such as Maehara and the premiership stands party kingmaker Ichiro Ozawa, who controls the DPJ\'s biggest political faction.
Ozawa, a divisive figure who faces criminal trial over a different donations scandal, leads up to 130 lawmakers out of the 398 who can vote on Kan\'s replacement.
He made waves Friday by saying he would not support Maehara, throwing the race into uncertainty.
During his tenure, 64-year-old Kan struggled amid low support ratings, a power struggle within the DPJ and a divided parliament in which the Liberal Democratic Party opposition blocked various bills.
The deadlock helped erode high early expectations of him as the first leader in years not born into a political dynasty, as the DPJ failed to meet its election pledges.
He was seen as mishandling the response to the March quake and tsunami that left 20,000 dead or missing and sparked the Fukushima nuclear power plant accident that forced tens of thousands to evacuate.
The atomic crisis triggered accusations of government negligence amid radiation leaks and food safety scares.
Kan later advocated a nuclear-free future for Japan in defiance of the power companies, bureaucrats and politicians who make up Japan\'s so-called "nuclear village", making more enemies along the way.
The message tapped into popular sentiment, with some polls saying 70 percent of Japanese want to phase out atomic power, but was not enough to revive his own tumbling ratings.
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