Japan dissolves parliament; polls on 16 December

Japan dissolved its parliament today, setting the stage for a 16 December election that is widely expected to throw Prime Minister Yoshihiko Noda and his Democratic Party of Japan (DPJ) out of power and return of the long-dominant Liberal Democratic Party (LDP) with conservative former prime minister Shinzo Abe at the head.

However, uncertainties will remain in Japan, as few expect the election, three years after a historic victory swept the DPJ to power for the first time, will fix a policy stalemate that has plagued the economy as it struggles with an ageing population and the rapid rise of China.

A nationwide ballot could usher in Japan's seventh prime minister in six years, and deepen Japan's political inertia at a difficult time for the nation.

At the same time, neither side is expected to return a majority to Parliament, so the next government most likely will be built on a shaky coalition or cooperation with splinter parties.

Tokyo is embroiled in a damaging territorial dispute with China, and Japan's economy, mired in deflation, is edging toward its third recession in just over three years.

Reconstruction after the tsunami and nuclear disaster last year is stalling, the population is declining and public debt is rising.