Japan's Chief Cabinet Secretary Yoshihide Suga attends a press conference at the Prime Minister's office in Tokyo, Japan, on Aug 31, 2020. (CHARLY TRIBALLEAU / AFP)

TOKYO - Japan's top government spokesman, Yoshihide Suga, moved a step closer to becoming the next premier after the ruling party decided on Tuesday on a slimmed-down leadership vote that favors the long-time lieutenant of Prime Minister Shinzo Abe.

Suga is widely expected to stay the policy course set out by Abe, including the "Abenomics" strategy aimed at reviving the economy and keeping it afloat amid the pandemic

Suga has also won the backing of the largest faction of the Liberal Democratic Party (LDP), media reported, making him a strong front-runner to replace Abe, who abruptly announced on Friday he was stepping down for health reasons.

Suga has not publicly announced his candidacy for leader of the Liberal Democratic Party (LDP) but has indicated privately that he intends to run, a source told Reuters.

Suga will hold a news conference at 5:00 pm (0800 GMT) on Wednesday, according to a notice published at the ruling party headquarters on Tuesday.

Media had reported he would formally announce his intention to run on Wednesday.

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The party's leader will almost certainly become prime minister because of its majority in the lower house of parliament.

Suga, 71, is widely expected to stay the policy course set out by Abe, including the "Abenomics" strategy aimed at reviving the economy and keeping it afloat amid the COVID-19 pandemic.

A self-made politician, Suga was chosen by Abe in 2012 for the pivotal role of chief cabinet secretary, acting as top government spokesman, coordinating policies and riding herd on bureaucrats

Suga's most likely rivals for the top spot will be former defense minister Shigeru Ishiba and ex-foreign minister Fumio Kishida.

Ishiba and Kishida, currently policy chief of the LDP, both announced their candidacies on Tuesday. But Defense Minister Taro Kono, who had been expected to run, had decided not to, Kyodo news reported.

Japan's Liberal Democratic Party (LDP) member and former defense minister Shigeru Ishiba attends a press conference to announce his candidacy for LDP leadership in Tokyo, Japan, on Sept 1, 2020. (CHARLY TRIBALLEAU / AFP)

The LDP general council's decision to keep rank-and-file party members out of the leadership vote gives Suga, with his powerful backers, a leg-up in the race. Ishiba, who is more popular with voters, as well as hundreds of other party members had opposed the format.

On Tuesday, former defense minister Shigeru Ishiba and ex-foreign minister Fumio Kishida both announced their candidacies

Announcing his candidacy, Ishiba said it was "very regrettable" that all LDP members would not be able to vote for their leader. He has said the decision would be bad for both democracy and the party.

Kishida, who was long seen as Abe's preferred successor but scores low in voter polls, emphasized his experience in economics and foreign policy, saying at a news conference he would do his "utmost for the nation and the people".

He said the slimmed-down leadership race was in line with party rules and Japan must continue with fiscal stimulus.

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"As the battle with coronavirus appears to be prolonged, we cannot expect a recovery in demand for a while. As such, bold fiscal and monetary measures must continue," Kishida said.

Japan's former foreign minister and Liberal Democratic Party's (LDP) Policy Research Council's chairman Fumio Kishida arrives at the LDP headquarters in Tokyo, Japan, on Aug 31, 2020. (KAZUHIRO NOGI / AFP)

Avoid political vacuum

LDP Secretary-General Toshihiro Nikai, whose faction is backing Suga, said a simplified vote, by party MPs from both chambers of parliament and heads of local chapters, would be taken in the interest of speed.

"We must elect a new leader as soon as possible to avoid creating a political vacuum," Nikai told reporters.

LDP General Council chief Shunichi Suzuki said the vote was unanimous, with some worrying that a prolonged process would place a burden on Abe's health.

"If we hold a full-spec election, it would take two months to complete," he told reporters, adding that policymaking on budget and coronavirus measures would also suffer.

A simplified vote, by party MPs from both chambers of parliament and heads of local chapters, would be taken in the interest of speed so as to "avoid creating a political vaccum," said LDP Secretary-General Toshihiro Nikai

On Monday, younger LDP legislators had met with Nikai to present a demand from more than 140 MPs and about 400 local party lawmakers for a full-scale vote. Several local chapters including Osaka had also demanded the same.

The LDP is expected to hold its leadership vote on Sept 14, with an official announcement due on Wednesday.

READ MORE: Japan's LDP to 'hold leadership vote on Sept 14' to pick PM

Financial markets also favour and appear to have factored in a win by Suga.

"He is considered to be a very effective policy leader within the party and bureaucracy ... and was key to Abe's successful tenure," said John Vail, chief global strategist at Nikko Asset Management.

"Suga's experience with the virus situation, including his appropriate push-back on complete shutdowns, is key, as this is Japan's greatest concern right now," he added.

Another possible contender is Foreign Minister Toshimitsu Motegi, who said on Tuesday he had not decided whether to run, while former cabinet minister Seiko Noda said she would not run.