The polls, seen as a bellwether for national political sentiment, come as Abe is buffeted by a series of setbacks and scandals that have driven down his popularity.
A new political party set up by former TV anchorwoman Yuriko Koike, elected Tokyo governor in a landslide vote last year, was able to capitalise on this to seize 49 seats out of 127, becoming the leading group in the capital's assembly in yesterday's election.
"I'm determined to reshape the party to work together and win back trust among the public through realising achievements," he said.
Abe was elected prime minister in late 2012 with a mandate to revitalise the economy.
But the 62-year-old is under fire over allegations he showed favouritism to a friend in a business deal, which the prime minister has denied.
Koike, 64, is a former member of parliament and defence minister who is widely seen as having ambitions to return to national politics and is touted as a strong candidate to be Japan's first female prime minister.
After the election, her Tomin First party increased its assembly seats to 55 by admitting six further candidates who had run as independents.
A third party Komeito -- a moderate party backed by a Buddhist-linked group -- has long sided with Abe in national politics, but is cooperating with Koike's local party in Tokyo.
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