Abe has defied opinion polls that say many voters want him to quit as well, arguing that Sunday's election blow showed anger over the scandals surrounding his administration but not his conservative agenda.

Farm minister Norihiko Akagi, 48, becomes one of the shortest-serving members of a Japanese cabinet in memory. He took office just two months ago after his predecessor killed himself amid a funding scandal.

But in his short time in office Akagi was embroiled in his own set of money troubles, raising further questions about Abe's choice of ministers.

"There were various reports about me during the upper house election campaign. It is an undisputed fact that these were partly responsible for the defeat of the ruling coalition," Akagi said after resigning.

Akagi also attracted unwanted attention 10 days before the election when he showed up at a cabinet meeting with large bandages covering his face.

He said he had a skin irritation, but media ridiculed him, saying that -- like Abe's cabinet -- he looked beaten up.

"I was chastised by many people for not appropriately explaining my illness. This also affected the election results and I apologise," said Akagi, who showed reporters a stack of receipts in a bid to explain past controversies.

Akagi is the third cabinet minister to resign since Abe took office in September.

"The way he explained things was bad," Abe told reporters after receiving Akagi's resignation. "As the result, people's distrust grew, and I took it seriously."

But senior lawmakers within the ruling party were openly critical of both Akagi and Abe, who had earlier said he was planning a cabinet reshuffle.

Upper-house legislator Yoichi Masuzoe said the resignation would have "nothing but a negative impact" on the administration.

"This makes people wonder why he's resigning before a planned cabinet reshuffle. They may speculate this is a strategy to put off the reshuffle and extend the life" of the current cabinet, he said.

"The prime minister's office has lost commonsense. I'm taken aback."

Toshimitsu Motegi, deputy secretary-general of the ruling Liberal Democratic Party, said "some people who contested the election feel he should have done this a bit earlier."

Party secretary general Hidenao Nakagawa also offered to resign after the election drubbing, although he is still in his position pending a replacement.