Toyota is to recall its flagship Prius hybrid in Japan, it was reported today.

JAPAN’s ruling partyconceded a crushing defeat after 54 years of nearly unbroken rule as voters were poised to hand the opposition a landslide victory in nationwide elections, driven by economic anxiety and a powerful desire for change.

Yasuo Fukuda appeared destined to become Japan’s new prime minister as his sole challenger admitted today he was likely to lose the ruling party’s upcoming leadership election.

Defence minister Fumio Kyuma apologised today for saying the US atomic bombings of Japan during the Second World War “couldn’t be helped”.

Japanese Prime Minister Junichiro Koizumi will continue his annual visits to a war shrine, a close aide said today, despite furious objections from China and other Asian countries who say the visits glorify Japan’s past wartime brutality.

Chinese textbooks are “extreme” in their interpretation of history, Japan’s foreign minister said today.

State Minister for Economic and Fiscal Policy said Japan has to pursue its reforms more vigorously after the recent sharp fall in US stocks, which helped to push up the value of the yen against the dollar.