Japanese Prime Minister steps down

Japan's beleaguered prime minister Naoto Kan has resigned after a turmoil-filled 15 months in office, clearing the way for the country's sixth leader in five years.

Kan has come under attack from critics for failing to show leadership after the devastating 11 March earthquake and tsunami, and the ensuing nuclear crisis.

He had already promised he would go if a number of new laws were passed by parliament, and with these now approved Kan has stuck to his word.

The ruling Democratic Party of Japan will choose a new leader on Monday who is poised to become prime minister.

Kan said he had done all he could to cope with the challenges he faced in his short tenure.

"Under the severe circumstances, I feel I have done everything I had to do," he said in a departing speech, according to the BBC. "Now I would like to see you choose someone respectable as a new prime minister."

Despite his departure, shares climbed overnight in Japan, with the Nikkei closing up 27 points at 8,799. The market was driven higher after new data showed prices rose in July unexpectedly - a boost for a nation fighting deflation.