Koizumi's popularity hits fresh peak

By CNN's Alex Frew McMillan in Hong Kong

TOKYO, Japan (CNN) -- Prime Minister Junichiro Koizumi's popularity is at unprecedented levels and rising, a poll showed Tuesday.

The Koizumi cabinet's approval rating has hit a record 85 percent, the survey found.

That's up 5 percent from April, according to the business daily Nihon Keizai Shimbun, which conducted the poll over the weekend.

On the flipside, the Koizumi cabinet's disapproval rating is at a record low of 7 percent. It fell 1 percentage point, the Nikkei said.

Popularity at odds with business sentiment

The Koizumi government's popularity continues to move in the opposite direction from the economy.

Disappointing figures for first-quarter growth released on Monday painted a picture of a Japan many experts feel is in recession. It would take a second quarter of negative growth to meet the official Western definition.

On the Tokyo Stock Exchange Tuesday, the benchmark Nikkei dropped 1.4 percent to stand at 13,043.71 at the lunchbreak.

Business sentiment has also started to decay. For the first time in almost two years, more of Japan's large companies expect the economy to get worse than see it getting better, a study last week showed.

Experts warn that Koizumi may hurtle Japan into dire trouble if he pushes ahead too quickly with reforms.

Support for road taxes to ease pain

But the poor shape of Japanese industry has not dented the Koizumi government's populist appeal.

Koizumi has frequently warned that his reforms -- including shaping up Japan's banks and trimming government spending -- will mean pain for Japan, in the form of higher unemployment and bankruptcies.

The Nikkei's poll showed that 71 percent of respondents endorse using road taxes to offset reforms. Critics often cite Japan's road taxes as a prime example of its pork-barrel politics.

The wavy-haired Koizumi has captured the hearts of many since he took office in April, promising to bring sweeping change to Japan's hidebound political scene.

Several unconventional cabinet appointments -- particularly that of fiery and controversial Foreign Minister Makiko Tanaka -- have proved broadly popular and furthered Koizumi's image as an outsider.

The ruling Liberal Democratic Party has also enjoyed a rejuvenation under Koizumi. The Nikkei poll shows it has the highest approval rating of any political party in Japan, at 48 percent, up seven points.

It now stands at the same level as during the tenure of Prime Minister Kiichi Miyazawa in 1992.

The LDP's image took a beating under the man that preceded Koizumi, Yoshiro Mori. Political analysts feel Koizumi was appointed to see the LDP through next month's Upper House elections.

When asked whom they plan to vote for in the elections, 44 percent of respondents cited the LDP, up 9 percentage points.

But the poll showed Koizumi's popularity has not spilled over to the other parties in his coalition, the New Komeito and New Conservative parties.