Several possible contenders -- including Foreign Minister Keizo Obuchi and former chief cabinet secretary Seiroku Kajiyama -- have emerged. The ruling Liberal Democrats are expected to vote on Hashimoto's successor as early as next Tuesday.

But the party's top contenders are better known for their savvy at winning the party's endless factional wrangling than for their prowess on economic policy and criticism was already growing that neither would be best to steer Japan out of its deepest recession in decades.

Japan's political precedent -- if followed -- would limit the choice of new leader to a short list of politicians who have been long faithful to the ruling party.

Among those widely speculated on as the leading candidates were Obuchi, Kajiyama and Health and WelfareMinister Junichiro Koizumi.

In a survey of 55 top corporate executives published today by the Nihon Keizai newspaper, only 16 named anyone they favoured as a replacement for Hashimoto.

Of that group, 13 tapped Kajiyama, who has had experience drafting economic policy within the ruling Liberal Democratic Party. The LDP hopes to nominate a successor on July 21. Official approval by parliament is expected, at the earliest, around the end of this month. Hashimoto will serve until a successor is chosen but is little more than a caretaker, and his sudden resignation is already causing waves of confusion.

Hashimoto has cancelled his official visits to the US and France, both scheduled for later this month. And in what can only be considered the worst of timing, Russian Prime Minister Sergei Kiriyenko was to complete a two-day stay in Tokyo today that was completely overshadowed by the political upheaval.

Obuchi, meanwhile, squelched a China visit that was to have begun tomorrow."I am aware that my name ismentioned as a possible successor, but I'm here only to accomplish my duty as foreign minister," Obuchi said today. "I'm not thinking about any ifs," he said.

Koizumi, supported by young reformist Liberal Democrats, said the choice of the new leader should reflect the voters' message of anger at the party's failure to ease Japan's economic problems.

Economy fears rattle Asian neighbours
TOKYO: Asian countries depending on Japan to help mend their shattered economies are worried that the country's political turmoil could prolong the region's woes.

The crumbling of Japanese Prime Minister Ryutaro Hashimoto's Government has come amid more bad economic news from Japan's neighbours: Malaysia said for the first time that its economy will shrink this year, and a top economist predicted the same for Hong Kong.