The Liberal Democratic Party suffered a stunning defeat in Sunday's Upper House election as voters issued an apparent no-confidence vote against Prime Minister Ryutaro Hashimoto's economic policies.

The LDP won 45 seats on Sunday, far below the 60 the party had up for grabs. Combined with its 58 uncontested seats, the LDP's total strength in the 252-seat chamber now stands at 103, compared with 118 before the election.

This means the party is 22 seats short of a simple majority, even if Upper House President Juro Saito, a Liberal Democrat who became an independent upon taking his post, returns to the party. Only with the help of the 22-strong Komei would the LDP be able to recover a majority in the upper chamber.