TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe, beset by scandals and falling support, opted for safe hands over fresh faces in a cabinet reshuffle on Thursday but the changes may not boost his support to the extent he seeks.

Japan's Prime Minister Shinzo Abe attends a news conference after reshuffling his cabinet, at his official residence in Tokyo, Japan, August 3, 2017. REUTERS/Kim Kyung-hoon

Many ministers are being reappointed, such as Finance Minister Taro Aso, or are taking up posts they have held before, some in Abe’s first 2012 cabinet.

One exception is new Foreign Minister Taro Kono, known for his willingness to criticize the ruling party and a frankness unusual for a Japanese politician.

Abe also appointed longtime ruling party policy veteran Toshimitsu Motegi as new economy minister overseeing structural reforms, which are part of the premier’s “Abenomics” stimulus policies aimed at reviving the stagnant economy.

(For a graphic on Japan's Cabinet reshuffle, click tmsnrt.rs/2eSMmzS)

“The economy remains our top priority,” Abe told a news conference after the reshuffle, apologizing for the scandals he described as having harmed public trust in his policy handling.

“We’ll seek to end deflation by accelerating a virtuous economic cycle.”

Motegi lauded the achievements of Abenomics but said more had to be done, especially to raise the potential growth rate.

“We will focus on improving the level of skills in the work force and make investments in the seeds of future growth,” he told a news conference.

Opinion polls show support for Abe has plunged to its lowest since he returned to office in December 2012 with a promise to revive Japan’s stale economy and bolster its defenses, endangering his goal of revising the pacifist constitution.

Abe had until recently also been seen as likely to win a third term as head of his ruling Liberal Democratic Party (LDP) and thus the premiership, putting him on track to be Japan’s longest-serving prime minister.

But support in recent polls has fallen below 30 percent, with the opposition fanning suspicions of Abe’s favoritism to a friend and voters believing that he and his aides have grown arrogant in office. He was also hurt by the LDP’s defeat by a novice political party in a July assembly election.

The market appraisal of the reshuffle was lukewarm.

“Interpreting it positively, he’s re-assembled his first cabinet with hands-on people prioritizing economic revival,” said Hiroyuki Fukunaga, chief executive at Investrust. “But it also seems as if we’ve returned to that time.”

“HUGE ASSET”

New Foreign Minister Kono, a former administrative reform minister, has a degree from Georgetown University in Washington and worked as an aide for several U.S. politicians.

“In the current state of confusion and flip-flop in Washington, Kono’s deep and broad network of personal connections will be a huge asset,” Jesper Koll, head of equity fund WisdomTree Japan, said in an email.

One of Kono’s major tasks will be to coordinate closely with the United States, Japan’s closest ally, in the face of North Korea’s missile and nuclear development programs.

“As a result of these issues, which have worsened the security environment surrounding Japan, we will have to strengthen our relationship with the United States more than ever before,” he told a news conference.

Besides Aso, Trade Minister Hiroshige Seko and Chief Cabinet Secretary Yoshihide Suga, who has drawn criticism as the face of a cabinet that many voters feel came to take them for granted, will remain in their posts.

Slideshow (20 Images)

Internal Affairs Minister Seiko Noda, often spoken of as a possible future female premier, may have been added in an attempt to woo women voters, who are less enthused by the Abe government than men.

Despite Abe’s promises to create a society “where women can shine,” the cabinet now has only two women, down from three in the last and five in one of his previous cabinets - a sign of how far women still have to go in the LDP, said Misako Iwamoto, a women’s studies professor at Mie University.</s>Japan’s Prime Minister Shinzo Abe reshuffled his Cabinet on Thursday, adding party veterans in a bid to restore his battered popularity.

Chief Cabinet Secretary Yoshihide Suga, who retained his post, announced the new lineup.

Abe’s approval ratings have suffered from scandals over alleged cronyism and other abuses and objections to the ruling Liberal Democratic Party’s tendency to force unpopular legislation through parliament.

The shakeup reflects Abe’s recognition that despite the Liberal Democrats’ overwhelming majority in parliament, his own once seemingly invincible position may be imperiled.

But plans for the reshuffle were disclosed weeks in advance, and it was not expected to have a major impact on the foreign policy or economy of America’s biggest ally in Asia.

The newly named ministers include many Cabinet veterans, including Itsunori Onodera, a former defense minister who again was named to that post.

Last week, Abe protege Tomomi Inada stepped down as defense minister after the disclosure that the ministry hid information about risks faced by Japanese peacekeeping troops in South Sudan.

Abe also re-appointed Taro Aso as finance minister and deputy prime minister, Reuters reported. Aso has held both positions since Abe came to power in late 2012.

Abe also re-appointed Hiroshige Seko as trade minister, and Taro Kono as foreign minister, the Reuters report said.

Japan’s stock market initially shrugged off the changes, most of which were initially disclosed Wednesday.

This story includes reporting from the Associated Press.</s>Tokyo: Japanese Prime Minister Shinzo Abe on Thursday was set to announce new defence and foreign ministers as part of a cabinet revamp he hopes will stem a decline in public support after a series of scandals and missteps.

Political blueblood Abe, in office since late December 2012, has pushed a nationalist agenda alongside a massive policy effort to end years of on-off deflation and rejuvenate the world`s third-largest economy.

But he has seen public support rates plummet in the past few months over an array of political troubles, including allegations of favouritism to a friend in a business deal — which Abe strongly denies.

Abe will reportedly reappoint former defence minister Itsunori Onodera to the post after close political ally and fellow hawk Tomomi Inada resigned last week following a scandal at the ministry over the handling of military documents.

He is also set to tap as ministers some who have opposed his policies, including Taro Kono, the son of a dovish former foreign minister known for issuing a 1993 apology as chief cabinet secretary over Japan`s use of "comfort women" — a euphemism for sex slavery — in World War II.

US-educated Kono is set to replace Fumio Kishida, who served as foreign minister since Abe came to power. Kishida, often tapped as a future Prime Minister, is moving to a top post in the ruling Liberal Democratic Party.

"I deeply regret that my shortcomings have invited this situation," a chastened Abe said ahead of the formal announcement of the cabinet changes.

Abe`s LDP suffered a drubbing in local Tokyo elections last month, which analysts and newspapers blamed on an increasing "arrogance" on the part of the Prime Minister.

Kono, 54, is known as an independent-minded, anti-nuclear power advocate, in sharp contrast to Abe`s support for atomic energy.

Meanwhile, Seiko Noda, 56, once hailed as Japan`s most likely first female Prime Minister and who once tried to challenge Abe for the party leadership, was expected to serve as internal affairs minister.

Returning defence chief Onodera, 57, held the post for nearly two years until September 2014, and has vowed to restore unity and confidence within the ministry.

His expected appointment also comes amid rising tensions surrounding North Korea`s missile development.

Pyongyang launched its latest missile late Friday, just hours after the US and Japan moved to step up sanctions against it following its earlier test of an ICBM capable of reaching parts of the US.

Meanwhile, Abe was seen leaving some key posts, such as finance minister and chief cabinet secretary, unchanged.</s>TOKYO: Japanese Prime Minister Shinzo Abe has chosen his new cabinet, reappointing key economic ministers but replacing his defence and foreign ministers in a sweeping reshuffle, the top government spokesman said on Thursday.

Abe re-appointed Taro Aso as finance minister, top government spokesman Yoshihide Suga, who will also remain in his job, told a news conference.

Itsunori Onodera, a former defence chief, is to return to the defence ministry - rocked by the resignation last week of close Abe political ally Tomomi Inada.

Taro Kono, the son of a former foreign minister, will become the country's new top diplomat.

Aso, who was also re-appointed as deputy prime minister, has held both portfolios since Abe swept to power in late 2012, pledging to revive the stagnant economy.

Abe also re-appointed Hiroshige Seko as trade minister, but named Taro Kono to the foreign ministry post and former defence minister Itsunori Onodera to the defence portfolio.

With his support plunging to below 30 per cent in some polls, Abe hopes to revive his flagging popularity with the reshuffle, but the stock market initially shrugged off the lineup, most of which was reported the day before.</s>Prime Minister Shinzo Abe's Cabinet has resigned ahead of a reshuffling of the leadership meant to shore up the ruling Liberal Democratic Party's ailing approval ratings.

Abe was due to announce a new Cabinet lineup later Thursday.

Abe's popularity has suffered from a spate of scandals over alleged cronyism and other abuses. Last week, Abe's protege, Tomomi Inada, stepped down as defense minister after the disclosure that the ministry hid information about risks faced by Japanese peacekeeping troops in South Sudan.

The widely expected Cabinet shakeup was not expected to have a major impact on Japan's foreign policy or economy.

Local media report that the new Cabinet will likely include many Cabinet veterans as public reassurance.</s>TOKYO: Japan's prime minister Shinzo Abe has reshuffled his Cabinet, opting for seasoned party veterans to help restore his battered popularity.Chief Cabinet Secretary Yoshihide Suga, who retained his post, announced the new lineup Thursday.Abe's approval ratings have suffered from a spate of scandals over alleged cronyism and other abuses. The shakeup Thursday was anticipated and was not expected to have a major impact on Japan's foreign policy or economy The newly named ministers included many Cabinet veterans, including Itsunori Onodera , a former defense minister who again was named to that post.Last week, Abe's protege, Tomomi Inada , stepped down as defense minister after the disclosure that the ministry hid information about risks faced by Japanese peacekeeping troops in South Sudan.</s>TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe has chosen his new cabinet, reappointing key economic ministers but replacing his defense and foreign ministers in a sweeping reshuffle, the top government spokesman said on Thursday.

Abe re-appointed Taro Aso as finance minister, top government spokesman Yoshihide Suga, who will also remain in his job, told a news conference.

Aso, who was also re-appointed as deputy prime minister, has held both portfolios since Abe swept to power in late 2012, pledging to revive the stagnant economy.

Abe also re-appointed Hiroshige Seko as trade minister, but named Taro Kono to the foreign ministry post and former defense minister Itsunori Onodera to the defense portfolio.

With his support plunging to below 30 percent in some polls, Abe hopes to revive his flagging popularity with the reshuffle, but the stock market initially shrugged off the lineup, most of which was reported the day before.</s>Abe, who had been enjoying support ratings around the 60 per cent at the beginning of this year and looked set to retain the leadership of the LDP through to 2021, has suffered a series of blows that saw his poll numbers tumble into the 20s.

“I reshuffled my cabinet with a determination to go back to the high point we occupied when we regained control of the government five years ago,” Abe said at a press conference Thursday night, during which he did a long, low bow of contrition and voiced his “deep remorse” for losing the public’s trust.

By appointing a lineup of experienced political veterans from across various factions in the ruling Liberal Democratic Party (LDP), Shinzo Abe tried both to restore stability to his government and to show the Japanese people he was working to put right the recent problems, analysts said.

TOKYO—A deeply contrite Japanese prime minister, tainted by political scandals and plummeting in the polls, overhauled his cabinet Thursday in an attempt to stave off challenges to his leadership.

“Our top priority is the revitalization of the economy,” Abe said in the press conference.

The prime minister seemed to suggest that this cherished political goal, which would have enabled him to strengthen the Japanese military, was being put on the back burner.

He has become embroiled in two cronyism scandals centred around educational institutions and his defence minister has been accused of a coverup that would — perhaps inadvertently — help Abe pursue his goal of revising the American-written, postwar constitution.

In the reshuffle, the prime minister changed 14 of the 19 cabinet positions.

Notably, he moved his foreign minister of the last five years and potential rival, Fumio Kishida, into the number three position in the LDP, putting him in charge of the party’s Policy Research Council.

The move was apparently designed to keep Kishida’s supporters happy and stop them from trying to oust Abe in LDP leadership elections next year. Abe also promoted another rival for the leadership, Seiko Noda, making her internal affairs minister.

As the new foreign minister, Abe appointed Taro Kono, who studied at Georgetown University in the early 1980s and worked on Capitol Hill for Richard Shelby of Alabama, who was a Democratic congressman at the time. Among the archconservatives running the LDP, the 54-year-old Kono is considered something of a moderate.

His father, Yohei Kono, led the study that resulted in the 1993 Kono Statement, in which Japan offered its “sincere apologies and remorse” to the women in Korea and China who had been used as sex slaves by the Japanese army during the Second World War.

One of Kono’s first tasks will be to travel to the Asean Regional Forum in Manila next week, where North Korea will be one of the top agenda items. Secretary of State Rex Tillerson will also be attending and the two are certain to meet.

Abe put two trusted political veterans into the portfolios at the centre of his current woes: education and defence.

Itsunori Onodera will return to the post of defence minister, which he held for almost two years when Abe returned to the premiership at the end of 2012, after the resignation last week of the gaffe-prone Tomomi Inada, once viewed as Abe’s protégé.

Inada had been accused of hiding records of the Self-Defense Forces’ (SDF) controversial peacekeeping activities in South Sudan last year, when the security situation there was rapidly worsening. If the logs had been made public, this could have sapped the momentum from Abe’s plan to allow the SDF, as the Japanese military is known, to cast off some of its postwar limitations.

Onodera represented a safe choice after Inada, said Sheila Smith, senior fellow for Japan studies at the Council on Foreign Relations.

“This makes complete sense,” Smith said. “Abe needs someone who knows what he’s doing, because Japan is about to write a new five-year plan and will upgrade its missile defences. Onodera has serious policy chops and is well-known in Washington.”

And for education, Abe installed Yoshimasa Hayashi, a solid technocrat who had previously served as minister of defence and agriculture, and has a squeaky clean reputation. That was needed after the controversies involving the two schools, which Abe was accused of indirectly arranging favours for.

But it’s not clear that the changes will put an end to Abe’s problems, Smith said.

“We’ll have to wait and see how the public responds,” she said, noting that the problem was with one person, not the party as a whole. “The polling data showed that the public had lost trust in Abe himself.”

The one thing the LDP has going for it: the main opposition Democratic Party is in even worse shape, with its latest leader — a woman who was supposed to become the new face of the beleaguered party — also standing down last week.</s>TOKYO (AP) — Japan’s Prime Minister Shinzo Abe reshuffled his Cabinet on Thursday, opting for seasoned party veterans to help restore his battered popularity.

Chief Cabinet Secretary Yoshihide Suga, who retained his post, announced the new lineup.

Abe’s approval ratings have suffered from a spate of scandals over alleged cronyism and other abuses and objections to the ruling Liberal Democratic Party’s tendency to force unpopular legislation through parliament.

The shakeup Thursday reflects Abe’s recognition that despite the Liberal Democrats’ overwhelming majority in parliament, his own once seemingly invincible position may be imperiled.

But plans for the reshuffle were disclosed weeks in advance, and it was not expected to have a major impact on the foreign policy or economy of America’s biggest ally in Asia.

The newly named ministers included many Cabinet veterans, including Itsunori Onodera, a former defense minister who again was named to that post.

Last week, Abe’s protege Tomomi Inada stepped down as defense minister after the disclosure that the ministry hid information about risks faced by Japanese peacekeeping troops in South Sudan.</s>TOKYO (BLOOMBERG) - Japanese Prime Minister Shinzo Abe's long-serving foreign minister left the cabinet on Thursday (Aug 3), a step that frees him to prepare a run for leadership of the ruling party.

Mr Fumio Kishida was appointed chairman of the Liberal Democratic Party's (LDP) Policy Research Council.

Mr Abe is reshuffling his ministers and party officials after a slump in popularity and a humiliating local election defeat. His struggles have increased tensions between the LDP's factions, one of which is headed by Mr Kishida.

It is unclear if Mr Abe sought to have Mr Kishida stay on.

Speaking to reporters after the change was announced, Mr Kishida did not address that question, speaking instead about issues including the economy.

Mr Abe will reveal his new ministerial line-up later on Thursday.

"Usually, people who want to aim for the leadership don't take cabinet jobs," said senior research fellow Tsuneo Watanabe at the Sasakawa Peace Foundation in Tokyo. "Mr Kishida's staying out so that he can launch a challenge."

Allegations of cronyism have undermined public trust in Mr Abe, while a series of scandals and gaffes have focused criticism on his ministers. His falling support does not necessarily put his job in immediate danger, though a recent poll indicated that voters no longer see him as the most appropriate person to lead the government.

"At this point, the people are taking a harsh view of the Abe administration and of the LDP," Mr Abe told party members on Thursday.

"I am reflecting deeply on having brought that situation on," he said. "We will win back the people's trust by renewing our determination and achieving results."

Until recently thought to be guaranteed a third straight term as party leader, Mr Abe is increasingly likely to face a rival or rivals in an election for party president expected in September next year.

Mr Abe's woes come as his government faces several offshore challenges: North Korea has tested two intercontinental ballistic missiles (ICBM) within a matter of weeks, despite international sanctions against the regime, and Japan must navigate the economic protectionism of United States President Donald Trump's administration.

Mr Kishida is seen as less hawkish than Mr Abe on defence, telling reporters on Thursday that his caution on changing pacifist Article 9 of the constitution had not changed.

Mr Abe is seeking to revise the US-drafted document by 2020 to make clear the legitimacy of the armed forces.

Having served as Mr Abe's foreign minister since 2012, Mr Kishida has said little in public about economic policy. Nevertheless, with the LDP divided over how to tackle Japan's ballooning debt and the best path for monetary policy, a leadership battle would raise doubts among investors.

While Japan's economy is heading for a sixth-straight quarter of growth, and unemployment is at its lowest levels since the 1990s, inflation has stalled at 0.4 per cent, far from the central bank's two percent target.

The reshuffle may not succeed in bolstering voter support, according to political science professor Koichi Nakano at Sophia University in Tokyo. "He'll be trying to regain his authority by turning a new page and getting rid of the problematic ministers. But he is also the source of the problem in many ways and he can't get rid of himself."

A general election does not need to be held until the end of 2018, but some analysts have speculated that Mr Abe will opt to call a poll this year to seek a fresh mandate. While his popularity has fallen, the opposition Democratic Party is also struggling, casting about for a new leader to bolster its support beyond single figures.

With a party founded by Tokyo Governor Yuriko Koike yet to make significant inroads on the national stage, the LDP would face minimal opposition.

Ms Koike evicted the LDP from power in the Tokyo assembly in an election last month.
Prime Minister of Japan Shinzō Abe appoints Tarō Kōno as Foreign Minister.