Japan PM announces resignation

His resignation leaves Japan looking for its sixth leader in five years as it tries to rebuild from the massive earthquake and tsunami that caused widespread destruction earlier this year.

Mr Kan said: “It was a difficult situation with many challenges, but taking that into consideration, I believe that I was able to do everything that I should have done.”

The premier had made three conditions on offering his resignation, a bill to promote renewable energy, a bond insurance bill and a supplemental budget.

"Taking into account these three important laws that were passed, I will, as I have said before, I will resign as head of the Democratic Party of Japan, effective today," he said.

Seven ruling Democratic Party of japan lawmakers are competing to replace Kan including former foreign minister Seiji Maehara, a security hawk, and Finance Minister Yoshihiko Noda, a fiscal conservative.