ANALYST VIEW-Taro Aso picked to become next Japanese PM

TOKYO (Reuters) - Japan's ruling Liberal Democratic Party picked former foreign minister Taro Aso, an outspoken nationalist and advocate of government spending and tax cuts to bolster the faltering economy, to be the next prime minister.

Aso, whose victory was widely expected, is assured the premiership in a September 24 parliamentary vote because of the LDP's majority in the powerful lower house.

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KEY POINTS:

-- Many are focusing on whether Aso will call a snap election for the lower chamber to take advantage of a hoped-for bounce in public support rates. Japanese media say an election could be called for as early as October 26.

-- The new prime minister will have trouble getting laws passed in parliament as the main opposition Democratic Party and smaller allies control the upper house and can stall legislation.

COMMENTARY:

REI SHIRATORI, PRESIDENT, INSTITUTE FOR POLITICAL STUDIES IN

JAPAN

"The problem with the LDP now is that it only has Aso's popularity to improve its chances of winning the election. Its organisation is in tatters and its policies are not going well. Ever since (former prime minister Junichiro) Koizumi, the LDP has had nothing but personal appeal to attract voters to the party.

"It will be nearly impossible for the LDP to win a majority or two-thirds of seats in the lower house in the next election. There is a 50-50 chance of a change in government. It will be either the (main opposition) Democratic Party winning the most votes or the LDP just barely getting a majority along with (coalition partner) New Komeito."

LIU JIANGYONG, CHINESE EXPERT ON RELATIONS WITH JAPAN,

TSINGHUA UNIVERSITY, BEIJING

"I think Aso finds himself in a delicate political position, and that will shape how he approaches China-Japan relations. In Japanese politics at the moment, the biggest issue isn't foreign policy but the domestic political outlook, with an election coming up. Aso's pressing task is preparing for an election and trying to ensure the LDP survives in power. That will take his attention away from foreign policy changes.

"Taro Aso is familiar with China-Japan relations, and I don't see any earth-shaking changes in relations. But after all he is known for his conservative views on foreign policy, including China....For now, we should observe how he conducts himself and China won't rush to quick judgments."

AKIYOSHI TAKUMORI, CHIEF ECONOMIST, SUMITOMO MITSUI ASSET