Japan’s parliamentary upper house approved a proposal to privatise the country’s postal service today, delivering a crucial victory for Prime Minister Junichiro Koizumi’s reform plans.

Japanese voters cast their votes in nationwide parliamentary elections today which look likely to strengthen Prime Minister Junichiro Koizumi’s grip on power and invigorate the leader’s push for economic reforms, including his long-cherished plan to privatise the nation’s postal system.

Japanese Prime Minister Junichiro Koizumi was riding high today in the homestretch of the campaign for weekend parliamentary elections, boosted by polls forecasting a comfortable win by the party that has ruled Japan for a half-century.

Japan’s upper house of Parliament voted down legislation to split up and sell the country’s postal service today, prompting Prime Minister Junichiro Koizumi to follow through on a threat to call snap elections that could shake the ruling party’s grip on power.