Considering that Japan led the world into an equity bear market, it was inevitable that, at some stage, it would lead it out. Barring unforeseen problems, it looks like that moment has arrived.

Japanese stocks are trading at a four-year high. There is an air of excitement on the streets of Tokyo following prime minister Junichiro Koizumi's election victory. Consumer spending is rising, lending to companies is on the way up and GDP growth of 1.5% is on the cards next year.