Voters handed a painful loss to the ruling Democratic Party of Japan on Sunday, with all signs indicating that more political instability — and even an internal revolt — could be in store for Prime Minister Naoto Kan.

"This will certainly induce an overhaul of the coalition government and it may take some time for the DPJ to find a compatible partner and stabilize the administration," political analyst Minoru Morita said.

The ruling bloc lost its majority in the Upper House with its minor partner, Kokumin Shinto (People's New Party), on Sunday evening.