Japan's election winners agree coalition deal

Japan’s newly elected ruling party reached an agreement with two smaller blocs on key policies to form a coalition government.

The Democratic Party of Japan spokesman Toshiaki Okiawa said today secretary generals of the three parties have resolved remaining differences including defence and foreign policies, reaching an overall agreement on policies and personnel issues toward a coalition government.

The Democratic Party won a sweeping victory in August 30 parliamentary elections and was seeking to create a coalition government with the Social Democratic Party and People’s New Party to replace the outgoing Liberal Democrats.

Democratic leader Yukio Hatoyama is almost certain to become Japan’s next prime minister in a parliamentary vote next week.