Japan PM says to reshuffle cabinet on Aug. 27-Kyodo

TOKYO, Aug 19 (Reuters) Japanese Prime Minister Shinzo Abe, seeking a fresh start after his party's stunning election defeat last month, said today he planned to reshuffle his cabinet on August 27, Kyodo news agency reported.

In a stunning defeat in a July 29 election, Abe's Liberal Democratic Party (LDP) and its junior partner lost their majority in the parliament's upper house, as voters outraged at scandals and bungled pension records turned to the opposition.

Abe did not have to step down because the coalition has a huge majority in the powerful lower house, but his decision to cling to his post has prompted criticism even within the LDP.

Asked by reporters whether a cabinet shuffle would be conducted on August 27 as has been widely speculated, Kyodo news agency quoted Abe as saying: ''I'm basically thinking in that direction.'' Abe, who is president of the LDP, is also expected to reshuffle LDP executive posts on the same day, Kyodo reported.

Abe had been planning to reshuffle his wounded cabinet to try for a fresh start after a string of scandals, mostly over accusations of funding irregularities. A minister has killed himself and three others have been fired or quit.

Reuters SZ VP0758