Liberal Democratic Party (LDP) leader Shinzo Abe has been appointed as the new Prime Minister of Japan by the lawmakers of the country n Wednesday following an election victory by his party recently.

Abe gained 328 votes of 478 valid votes in the 480-seat chamber in the lower house. On the other hand, he did not more than half of votes in the first round election. However, Abe defeated his rival Banri Kaieda, the new leader of the DPJ in the second round to become the new PM of the country, which is facing a difficult economic situation and adverse relationship with China.

Shinzo Abe's Liberal Democratic Party won 294 seats in Japan's 480-member lower house of parliament, according to reports. Prime Minister Yoshihiko Noda's Democratic Party of Japan lost three- fourths of its members. The new government is expected to make BOJ act more aggressively to take steps to revive the economy.

The demand for credit in the Japanese economy has been affected due to deflation and a high exchange rate. The situation has prevented the country from boosting its domestic consumption in recent years. Abe appears to be favoring more fiscal and monetary stimulus and has even asked the central bank to keep the interest rates at zero or even at sub zero levels.

Abe will unveil his new coalition government made up of legislators from LDP and the New Komeito Party to lead he country.