In July 2012, it was reported that the deputy prime minister Katsuya Okada had approached the Liberal Democratic Party to sound them out about dissolving the House of Representatives and holding the election in January 2013.
[1] An agreement was reached in August to dissolve the Diet and hold early elections "shortly" following the passage of a bill to raise the national consumption tax.
[2] Some right-wing observers asserted that as the result of introducing the consumption tax to repay the Japanese public debt,[3][4][5][6][7] the DPJ lost around 75% of its pre-election seats.
On 16 November, Noda dissolved parliament, thus allowing for a new election in a month's time, citing the lack of funds to carry on governmental functions and the need for an emergency budget.
[18][19] The significant swing back towards conservative politics was attributed to economic anxieties, including fear of falling behind China.
[22] The Liberal Democratic Party had campaigned on a tough stance on the Senkaku Islands dispute, leading to speculation as to how the new government would deal with the issue.
[19] Abe made his party's position clear immediately following the election, stating that "[their] objective is to stop the challenge" from China with regards to ownership of the islands.
[24] The re-election of the liberal conservative LDP raised concern in foreign media that Japan's relations with its neighbours – China and South Korea – would become strained, given the past visits to the Yasukuni Shrine by LDP prime ministers, the party's perceived de-emphasis of Japan's war crimes committed during World War II and their intention to amend the country's pacifist constitution to give more power to the Self-Defense Forces.
[29] United States President Barack Obama spoke to Abe via telephone to congratulate him on the results of the general election, and discussed ongoing efforts to enhance bilateral security cooperation as well as deepening economic ties.
[33] Foreign Minister Fumio Kishida said that government would give electoral reform new thought and examine the situation carefully in order to respond in the appropriate manner.