The Japanese people expressed their dissatisfaction with the LDP Sunday as the party was blamed for widening the income gap, devastated pension programmes and a series of corruption scandals.

The long-ruling party was blamed for the worst recession in post-war Japan, as anxiety weighed heavy on the public.

The incoming DPJ promised voters it would revitalize the world's second-largest economy by cutting wasteful spending and increasing household incomes to encourage spending.

The party also vowed to raise monthly child allowances, and to scrap both expressway tolls and gasoline taxes as part of its plan to stimulate consumer spending. But it has been criticised for being vague about how to finance its costly economic and social measures.

The Tokyo stock market reacted positively Monday to the change in power, with both indices rising to their intraday high this year. But investors sold shares due to a stronger yen before the end of trading, with the market losing about 0.4 per cent.