Coming to power, Hatayoma has promised the people to take the national economy out of recession and reverse the long economic slowdown. In the run up to the elections, the DPJ leader also promised that his government will increase social spending and make policies that are in line with public need, rather than corporate interests.

It is also likely that as a Prime Minister, Hatoyama will give a new direction to the country's relations with USA, a key Japanese ally. His elevation to the top post is being keenly watched by political observers, who apprehend that it would be interesting to watch how Hatoyama and his inexperienced party handles and works with the entrenched Japanese bureaucracy.

Prior to elections, Hatoyama had promised to rein in the powerful bureaucrats, who are believed to have a major say in running the government and the establishment. The promise of bureaucratic reforms carried major currency with voters and it influenced them in a big to vote for DPJ.

Hatoyama is likely to announce his cabinet within days as he accommodates his own party members as well as coalition partners, the Social Democratic Party and People's New Party in the country. He has already named Hirohisa Fujii as the country's new finance minister.