Monday, September 12 2005 15:17 Hrs (IST) - World Time -

Tokyo: Japanese Prime Minister Junichiro Koizumi went back to work today (Sept 12, 2005) with a powerful mandate to transform the nation's economic and political landscape after racking up a historic election victory.

Fresh from the triumph, which even many of his supporters had doubted was possible, a confident-looking Koizumi, clad in an open-neck striped shirt, waved to reporters as he entered his official residence.

The stock market rallied to a fresh four-year high in morning trade and the yen gained on expectations that Koizumi's crushing victory in yesterday's vote will allow him to accomplish reforms beyond privatizing the post office.

As he basked in the win, which gave his Liberal Democratic Party (LDP) a clear majority in government for the first time in 15 years, allies called on him to stay in power beyond his self-imposed September deadline.

"I think Prime Minister Koizumi needs to meet the people's expectations as so many people supported the Koizumi government," Takenori Kanzaki, who heads the LDP ally New Komeito party, told reporters.

Koizumi is expected to confirm in a meeting with Kanzaki that the LDP would maintain its coalition with New Komeito, a Buddhist-oriented pacifist party, even though it can now easily survive without its support.

The 63-year-old premier, running a campaign of colourful candidates who backed his signature plan of privatizing Japan Post, sealed a record majority in parliament with the power to push through any bill.