Although calm has returned to the Tokyo stock market, share prices remain at a depressed level.

The ruling coalition's victory in last month's Upper House election gave Prime Minister Junichiro Koizumi a mandate to push ahead with his economic reform initiative, but investors remain unconvinced.

While government officials have not publicly focused on day-to-day developments in the market, the serious impact stock market volatility could have on the real economy suggests they cannot continue to remain aloof very much longer.