In Japan, Abenomics focus is on corporate capex

Investors and economists in Tokyo wonder how to get Japanese corporations to start investing a ¥200 trillion cash horde.
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Japan needs to open its economy, according to critics
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<div style="text-align: left;"> Japan needs to open its economy, according to critics </div>

Investors and economists in Tokyo say Prime Minister Shinzo Abe’s weak agenda to promote industrial restructuring threatens his recovery programme because it won’t be enough to get companies to invest their cash.

Criticism of Abe’s June 5 policy address, which is widely viewed to have disappointed expectations regarding deregulation and liberalisation the so-called third arrow of Abe’s economic reforms focuses on creating an environment in which Japanese companies believe they can grow profits by putting cash to work. Abe is meant to announce further concrete steps this Thursday.

The fall in the Japanese stock market that accompanied Abe’s lacklustre address is not of great concern. The...

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