updated 12/26/2012 8:01:09 AM ET 2012-12-26T13:01:09

TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe said on Wednesday his government will pursue bold monetary policy, flexible fiscal policy and a growth strategy to encourage private investment.

"Japan won't have a future and won't be able to restore fiscal health without a strong economy," Abe told a news conference after taking office as the country's seventh prime minister in six years.

Abe has pledged to put top priority on beating deflation and taming the strong yen, which are dragging down the world's third biggest economy. He also wants to loosen the limits of Japan's post-World War Two pacifist constitution on the military and has vowed to take a firm stance in a territorial row with a rising China.

(Reporting by Leika Kihara and Stanley White; Editing by Edmund Klamann)

(c) Copyright Thomson Reuters 2012. Check for restrictions at: http://about.reuters.com/fulllegal.asp

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