PARIS, Sept 2 (Internet) The Organisation for Economic Cooperation and Development (OECD) Tuesday increased its forecast for growth in the US economy this year but slashed its predictions for Japan and the Eurozone.

TOKYO, Sept 2 (AFP) Asia's largest economy was left rudderless again today after Japan's prime minister quit suddenly, sparking concerns that free-market reforms will be put on a backburner as a recession looms. brThere was a weary sense of deja vu on financial markets, as the return of the revolving door politics of the recession-ridden 1990s left the country searching for its third prime minister in less than two years. brWhoever replaces Fukuda will inherit the same problems-a deadlocked parliament, a worsening economy, an ageing population and huge public debts. brThe Nikkei stock index ended down 1.75 per cent while the yen was higher. brThe political uncertainty may add volatility to the market in the short term, warned Kenichi Kawasaki, chief economist for Lehman Brothers in Tokyo. brHowever, we do not expect economic policies to change significantly as a result of a change in the prime minister, he said, predicting the ruling party could be forced to hold an autumn general election. brFukuda's surprise announcement late Monday came after the 72-year-old political moderate failed to reverse a slump in his popularity despite reshuffling his cabinet and unveiling a major economic stimulus package. brMany investors had already been disillusioned about the prospects for further economic reform given the legislative deadlock and signs that the ruling party is more concerned about the next election, due by September 2009.