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Can Japan’s reforms change the game?

John Redwood, Charles Stanley’s chief global strategist, looks at the impact of structural changes in Japan.

Two economies are associated in investors’ minds with the need for reform. In Japan, Mr Abe is well entrenched with a big majority behind his “three arrows” reforms. Designed to accelerate Japanese growth, the third arrow offered substantial changes to the way Japanese society functions and the way Japanese companies work. In India, many in markets are cheering on Mr Modi, who also enjoys considerable political support for a big programme of change to modernise his country. So how are they getting on? Can they do enough to change the game? Today I will look at the situation in Japan.

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