Japanese voters rebuked Yasuo Fukuda’s Liberal Democratic party in a closely watched by-election on Sunday when the opposition won a seat in parliament’s lower house.

The loss may increase dissatisfaction with Mr Fukuda’s leadership within his own party and embolden discontented members of the ruling bloc to seek an early general election. Polls had suggested the LDP would fail to hold the lower house seat in Yamaguchi, western Japan, which had been vacated by a ruling party lawmaker. Television networks called the election for the opposition Democratic Party of Japan as soon as voting closed on Sunday evening. The DPJ captured about 55 per cent of votes cast.