Japanese Prime Minister Yukio Hatoyama said Wednesday he still hoped his finance minister would stay in his job, following media reports the 77-year-old wants to step down due to poor health.
As Hirohisa Fujii was behind the birth of the government's budget plan, "I strongly wish that he will help it grow," Hatoyama told reporters.
"It is a matter of health. We must take into consideration the doctor's judgement," Hatoyama added.
Fujii's illness is a fresh test for Hatoyama, who has been embroiled in a political funding scandal and has seen a sharp drop in his public approval ratings since he swept to power in September.
The veteran politician was admitted to hospital on December 28 suffering from high blood pressure and fatigue, saying he was exhausted after weeks of work on the national budget for the next financial year.
He reportedly told Hatoyama on Tuesday he wanted to resign but the prime minister asked him to remain in the key post. Some Japanese media, however, reported late Tuesday that the government had accepted Fujii's resignation.
Fujii was picked by Hatoyama in September to steer Asia's biggest economy out of its worst recession in decades, returning to a post he held briefly in the early 1990s.
One of the few members of the current cabinet with previous government experience, Fujii had planned to retire from politics but was persuaded by Hatoyama to stay on to pursue an agenda of slashing public sector waste.
Deputy Prime Minister Naoto Kan, Yoshito Sengoku, state minister in charge of administrative reform, and Senior Vice Finance Minister Yoshihiko Noda have been named by local media as possible successors to Fujii.
Tokyo stocks rose 0.41 percent in morning trade on Wednesday as investors took the view that even if Fujii steps down, it is unlikely to have a major impact on economic policy.
"The market is very calm about this," said Masamichi Adachi, a senior economist at JPMorgan Chase.
"We don't expect major changes from this. The budget proposal for the next fiscal year is already finished. It is unlikely that it will be changed."


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