Prime Minister Keizo Obuchi won re-election in the Liberal Democratic Party's presidential election held Sept. 21. Four days later, Yukio Hatoyama was elected chief of the top opposition party, the Democratic Party of Japan. On Oct. 5, Obuchi launched his new three-party coalition government after New Komeito joined the ruling coalition of the LDP and the Liberal Party.

These events ushered in a new phase in Japanese politics. An extraordinary Diet session, which is likely to last until mid-December, will be convened Oct. 29. Debate is expected to focus on economic-stimulus measures, including a second fiscal 1999 supplementary budget, aid to smaller industries and ways of increasing employment.

Amid sharp confrontations between the ruling and opposition forces in the session, political attention will shift to a dissolution of the Lower House for a snap election. The LDP-LP-New Komeito alliance suffered a severe setback in the first election battle that was fought under the new political structure. DPJ candidate Yuichiro Hata won an Upper House by-election held Oct. 17 in Nagano Prefecture with about 360,000 votes, beating his LDP rival Kenichiro Fukazawa, who collected 240,000 votes. A Japan Communist Party candidate came in third with 140,000 votes, followed by a Social Democratic Party candidate with 100,000 votes. In what was regarded as a litmus test of the coalition, the DPJ won by a 6-4 margin.