Japan's prime minister Naoto Kan easily beat former party leader Ichiro Ozawa in a vote that exposed divisions over economic policy. Kan appealed to the Democratic party of Japan (DPJ) to unite behind him as he confronts mounting economic problems. But even with his nemesis sidelined, Kan cannot afford to be complacent. His victory coincided with the yen hitting a 15-year high against the dollar, adding to fears that the Japanese currency's rise was harming the country's export-led recovery. Kan also faces tricky political challenges. The DPJ suffered a big setback in July's upper house elections over its handling of the relocation of a U.S. marine base on the southern island of Okinawa. "This leadership election was just a sideshow," said Jeff Kingston, director of Asian studies at Temple University, Japan Campus. "Kan needs to work with other parties, but the prospects for that don't look good. There could be more policy gridlock, for which he may pay a hefty price. He's not out of the woods yet."