Japan managed to avoid the so-called March crisis as share prices picked up temporarily toward the end of the month. However, the stock market remained in a slump in April, with the Nikkei average dipping at one point to the 7,600 range.
When people talk about the implementation of measures to prop up share prices, the widespread image they have is that the government is again trying to introduce near-sighted steps that run counter to market principles.
Prime Minister Junichiro Koizumi has admitted there is no magical cure for the stock market, and that all he can do is promote structural reforms. If share prices were to correctly reflect the outlook for corporate earnings, it would be best to leave everything to the natural forces of the market and eschew government intervention.