Reforms crucial to Japan's health

The downward pressure on the world economy created by the terrorist attacks in the US will clearly have a major impact on the Japanese stock market. The earnings of several Japanese corporations will be negatively affected by a fall in external demand. However, the success or failure of Japan's prime minister in carrying out his reform plans remains crucial to the long-term health of the economy and stock market. The challenges ahead for Koizumi are immense and he has many political enemies, even in his own party. If he fails to deliver on his promises and his popularity falters, h...