New Liberal Democratic Party President Yasuo Fukuda was elected prime minister by a divided Diet on Tuesday afternoon amid the political turmoil stemming from Shinzo Abe's sudden resignation announcement two weeks ago.

The House of Representatives picked Fukuda as prime minister, while the House of Councilors elected Democratic Party of Japan leader Ichiro Ozawa. After consultations between the two chambers failed to reach an agreement, the Lower House choice prevailed under the Constitution.

After the ministers in Abe's Cabinet resigned en masse in the morning, Fukuda announced a new lineup in the evening that retained most of them — including Finance Minister Fukushiro Nukaga — to ensure there will be enough continuity to deal with legislative business in the Diet, which is still in session.