Japan's new trade minister Yuko Obuchi 'to quit' over misuse of funds

Japan's newly appointed trade and industry minister plans to resign following reports that some of her support groups misused political funds, Japanese media said.

Yuko Obuchi, the 40-year-old daughter of a former premier, had told people close to Prime Minister Shinzo Abe that she planned to resign and take responsibility for a furore she caused, the Nikkei newspaper said.

"What I have to do right now is to conduct a thorough investigation into the political funding issue," Obuchi said, when asked whether she intended to quit.

Obuchi denied claims she was due to meet Abe yesterday upon his return from an Asia-Europe summit in Italy.

Her resignation would deal a big blow to Abe, who tapped Obuchi less than two months ago to head the powerful Ministry of Economy, Trade and Industry (METI). She was one of five women Abe chose in a cabinet reshuffle in an effort to bolster his popularity by showing his commitment to promoting women.

Seen as a possible future prime minister, Obuchi apologised to a parliamentary panel in the wake of the reports of the misuse of funds, which could violate electoral and political funding laws.