Japan Cabinet to Resign, LDP's Mori tipped for PM

Japan's LDP Secretary-General Yoshiro Mori

Japan's cabinet was poised on Tuesday to resign -- possibly later in the day -- in a key step toward forming a new government under a successor to Prime Minister Keizo Obuchi, who was battling for his life after a stroke.

Ruling Liberal Democratic Party (LDP) Secretary-General Yoshiro Mori, a seasoned politician with broad support in the party, has been tipped by media and analysts to succeed Obuchi as LDP president and as prime minister at the head of a new coalition government.

Ruling politicians are keen to anoint a successor -- who must be approved by parliament -- to avoid a leadership vacuum as they struggled with a string of headaches from an erupting volcano on the northern island of Hokkaido to a looming Group of Eight (G8) summit in July.

Domestic media speculated that Obuchi's departure could speed up the schedule for an election for the powerful Lower House that must be held by October, with some saying the poll could be held as early as May to take advantage of a "sympathy vote" and seek a stamp of approval for the new government.

Domestic media said the cabinet would resign en masse, possibly within the day, opening up the way for a transfer of power from the incapacitated prime minister, with Mori likely to be chosen as LDP president to replace him.

The ruling coalition to be led by Mori will have a majority in both houses of parliament and link the dominant LDP, the Buddhist-backed New Komeito, and the Conservative Party, a new band of 26 lawmakers formed on Monday.