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Abenomics: Roadmap to corporate reform

Abenomics reforms could bring significant corporate improvements that rekindle interest in Japanese equities. By Hiroki Sampei

LAST year was a great year for Japanese equities. Investors returned to the world's third-largest economy on a wave of euphoria surrounding Prime Minister Shinzo Abe's bold ambition to drag Japan out of a deflationary stagnation that dates back to 1990.

The first two arrows of Abenomics - aggressive monetary stimulus and flexible fiscal support - were highly successful in building initial enthusiasm around Japan's economic outlook, triggering a sharp rally in the Japanese stock market.

However, enthusiasm has given way to scepticism in 2014, and investor unease was exacerbated by a worse-than-expected fall in quarterly gross domestic product (GDP) after the increase in consumption tax in April...

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