Prior to the constitution issue, Abe vowed to ensure his economic policy mix, dubbed Abenomics, a success, saying the goal was his administration's "greatest test and challenge."
He pledged to pull Japan out of deflation and make the middle- and small-sized enterprises benefit from the policy. "We must ensure everyone in Japan will be able to feel the benefits of economic recovery."
Abe stressed that his cabinet would set a new economic policy package to support the enterprises and to revitalize regional economies.
On Japan's foreign policies, Abe said he would like to improve relations with China from a broad perspective, adding he knew that "a good Japan-China relationship will definitely serve both countries' interests" and improved ties between the two countries" are what the international community desires."
He also said he had an honest exchange of view with South Korean President Park Geun-hye on the sidelines of an Asia-Pacific Economic Cooperation meeting in Beijing last month, and supported Park's proposal of a foreign ministerial meeting among Japan, China and South Korea.
The prime minister also said Japan and Russia began preparations for Russian President Vladimir Putin's visit to Japan and he wanted to resolve a territorial dispute with Russia and sign a bilateral peace treaty.
Abe said Japan would work with Russia to seek a peaceful solution to the Ukrainian crisis.
Abe formed his new cabinet shortly after his premiership election, with almost all members of his last cabinet retaining their posts.
Gen Nakatani, 57-year-old former chief of defense agency, was appointed as new defense chief, replacing Akinori Eto who declined the reappointment due to a political fund scandal.
Nakatani is the first Self-Defense Forces' officer to serve as director general of the Defense Agency, the predecessor of the Defense Ministry, under Prime Minister Junichiro Koizumi in 2001.
The new defense chief is seen as well-versed in defense and security policy, and an advocate of expanding Japan's security role abroad. The appointment is expected to serve Abe's defense posture since he returned to power late December in 2012.