Japan parliament upper house vetoes BOJ nominee

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TOKYO, March 19 (Reuters) - Japan's upper house of parliament voted down the government's nominee for the next Bank of Japan chief on Wednesday, a veto that means the post is set to be vacant in a few hours.

The vote was expected after executives of the main opposition Democratic Party said on Tuesday they would veto Koji Tanami, the government's second nominee for central bank chief after its first pick, BOJ Deputy Governor Toshiro Muto, was rejected by the parliament last week.

BOJ nominations need approval from both houses of parliament, including opposition-controlled upper house.

With current Governor Toshihiko Fukui retiring at midnight (1500 GMT) on Wednesday, he is expected to appoint Masaaki Shirakawa, who was confirmed as Deputy Governor last week, as acting governor.

Democrats and other small opposition parties opposed Tanami, a former top finance ministry official, as they think having a finance ministry heavyweight could hurt the central bank's independence from the government.

The upper house approved nomination of Kiyohiko Nishimura as Deputy Governor. Nishimura is seen confirmed as Deputy Governor after voting in the lower house around 12:30 p.m. (0330 GMT). (Reporting by Hideyuki Sano)