The narrow victory of a Democratic Party of Japan candidate in Sunday's by-election in Chiba Prefecture has given a boost to the main opposition force's new president, Ichiro Ozawa, virtually assuring his re-election in the DPJ's presidential poll in September, political pundits say.

On the other hand, the Liberal Democratic Party candidate's defeat is seen as another sign that Prime Minister Junichiro Koizumi is losing his touch, which may affect the LDP's choice of a successor the same month.

The by-election was seen as the first major test for Ozawa, who assumed the DPJ's top post earlier this month.