A survey showed 76.1 % of the respondents felt unconvinced of Hatoyama's explanation over the funding scandal, while 17.8 % showed understanding.
Support for prime minister Yukio Hatoyama's cabinet fell sharply over the past month as the public remained unconvinced of his explanation about a funding scandal, Kyodo news agency said on Saturday.
A Kyodo News nationwide survey conducted by phone on Friday and Saturday showed the support rating fell 16.5 points to 47.2 % from the previous poll done about a month ago, the news agency said.
The survey, the first on Hatoyama's government after Thursday's indictment of his two former close aides over false political funding records, showed the %age who did not support Hatoyama rose 13 points to 38.1 %.
The survey showed 76.1 % of the respondents felt unconvinced of Hatoyama's explanation over the funding scandal, while 17.8 % showed understanding.
But 64.3 % said he should do his utmost to explain and be accountable, and stay in power while taking appropriate steps, far more than the 21.1 % who said he should resign to take responsibility.
On Friday, Hatoyama, whose Democratic Party ousted its long-dominant conservative rival in August, repeated his determination to stay on the job. At a hastily called news conference after the indictment of the former close aides on Thursday, Hatoyoama apologised to the nation but said he would not resign.
Japanese media, however, said Hatoyama -- Japan''s fourth prime minister in three years -- might have to quit if voters find his explanations and his leadership weak. Broadcast media have repeatedly shown footage of Hatoyama while in opposition insisting politicians are responsible for any wrongdoing by their secretaries.
There is no suspicion of bribery because the funds, amounting to more than 300 million yen ($3.29 million), were funnelled from Hatoyama's own family fortune, media reports say.
But the indictments will put Hatoyama's leadership to the test as voter support has fallen from initial highs over 70 %. The premier has repeatedly denied knowing anything about the misreporting and said he would pay any taxes that may be due on cash received from his mother, a wealthy heiress.
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